The first step of company research is to determine if the company is publicly or privately owned.
A private company is a company that is not traded on any stock exchange. Private companies as a general rule do not have to file any documents with the U.S. Securities and Exchange Commission. Consequently, finding reliable information on private companies can be quite challenging.
Consider these tips for finding and using information on private companies:
A public company has shares of stock that represent an ownership interest in the company and those shares are traded openly on one or more stock exchange like the NASDQ or NYSE. Public Companies in the United States must file various forms and documents with the U.S. Securities and Exchange Commission detailing their financial performance and governance structure. Because of these regulatory requirements, information on many public companies is relatively easy to find.