Difference between public and private corporation

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An IPO is defined as the first ever sale of stock by a private company. It is usually offered more often by small companies looking to expand their capital. It can also be used by bigger private corporations looking to become publicly traded.

The difference between public and private corporation is that a public corporation has offered its stocks available for purchase through the stock exchange and therefore they have to file quarterly earning reports and its information is available to shareholders and the public. The private or partnership corporation do not trade stock in the stock exchange and do not have to provide any kind of information to anyone. SEC regulates a company that has gone public by imposing certain requirements such as disclosing a great deal of information before selling any securities.

An example of a recent IPO is JUNO THERAPEUTICS INC. which is listed in NASDAQ for a price of $24. Shares 11,022,917 with an offer amount to $264,550,008.

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