Question

0. Question 3
   Briefly but concisely describe two advantages and two disadvantages of a public company, in the context of comparing it to a private company.

Answer 1

The advantages of a public company contrast to private company are, the public company can share it's money via stock exchange to the public whereas the private company can only issue it's shares to the private company. Public company's are well regulated while private companies need not follow any regulations issued by SEC unless it has more than 500 shareholders, which is less regulated.

The disadvantages of a public company contrast to private company are, the public company has to follow SEC rules and regulations on heavy basis, while private companies which hold lesser than 500 shareholders enjoy the benefits of not following such heavy regulations. Publicly traded companies are large by scale more than the privately held companies most of the times.