What do you meant by private equity, Microeconomics

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Q. What do you meant by Private Equity?

Private Equity: A form of business in which company's entire equity base is owned by one or a small group of individual investors. Under private equity model, company doesn't issue shares onto the stock market and hence isn't generally required to release public financial statements or comply with other securities regulations. Private equity firms are normally considered to be more ruthlessly focused on generating shorter-term cash profits from their operations than joint stock companies.


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