How can we help you?

Private vs Public Company Share

You are here:
< All Topics

Private vs public Company Share

What is a private share?

A private share fund generally directs to a general partnership created by PE firms which are used to invest in private corporations. The private equity fund may have general investment criteria (indicating it only invests in different industries) or specific industry standards.

Investment managers will invest in corporations where capital and management resources can be effectively given towards creating new products or services, developing operations or turning around a distressed business to ultimately expand profitability and deliver engaging returns. Relying on the fund’s specific goals, management will concentrate on adding value to the corporation through restructuring, operation advancements, corporate governments and/or financial help.

Private shares can have varying techniques, with some performing in distinctive industries in which they can involve niche expertise while others invest in a wide range of industries to diversify their portfolio. Most private shares aim to provide above-average returns corresponding to standard share investments. The funds can also maintain added risk as there is no assurance as to the financial performance of the companies funded.

What is a public share?

Public share is when investors own shares in public companies, which are traded on a financial exchange. They deliver share, or ownership interest, in these public organizations. A company’s common stock, or shares or stock, is the ownership interest in the company diverged into equal shares. The way public share works:

  • Shares are itemized on a financial exchange, where anyone can purchase them.
  • A public company’s stocks are liquid, in that shareholders can sell them whenever they like or need to.
  • Workers of public companies may also be offered equity as part of their salary package. Generally, there is a “vesting period,” or a specified period a worker must stay with the organization to take the entire privilege of their shares.

The primary distinction between a private and a public company is that the shares of a public company are sold on a stock exchange, while a private company’s shares are not traded. There are several more significant distinctions to understand that are outlined below.

Private vs Public Share

There are fundamental differences between private and public shares, including who may invest, how and where the equity is swapped, and how investors achieve profits. Either route, future investors generally consider the risks and potential rewards of financing, understanding that the availability of data, level of regulation, and reporting needs are different.

Public equity is unrestricted to all investors via a financial exchange, and investors may take out their profits at any time by just selling their shares. Meanwhile, private equity is generally the part of high-net-worth individuals and institutional investors, who pool their finances to buy fundamental companies—waiting until the company exits the investment through an IPO or company sale to take and disperse returns to investors.


Overall, it is much easier to invest in a publicly traded company than a privately held company. Public companies, particularly larger ones, can efficiently be purchased and sold on the stock market and, thus, have excellent liquidity and a quoted market value.

Both private and public shares are incredibly essential for any company to generate capital for their long and short-term requirements. Although there are several differences between the two, organizations favor utilizing both these methods to invest in their operations along with assuring the long-term survival of their company.

If you want to invest Private and Public Company Share open an account with us.

For KYC for Demat account visit our website or click here.


Was this article helpful?
0 out Of 5 Stars
5 Stars 0%
4 Stars 0%
3 Stars 0%
2 Stars 0%
1 Stars 0%
How can we improve this article?
Table of Contents

• Beware of fixed/guaranteed/regular returns/ capital protection schemes. Brokers or their authorized persons or any of their associates are not authorized to offer fixed/guaranteed/regular returns/ capital protection on your investment or authorized to enter into any loan agreement with you to pay interest on the funds offered by you. Please note that in case of default of a member claim for funds or securities given to the broker under any arrangement/ agreement of indicative return will not be accepted by the relevant Committee of the Exchange as per the approved norms.
• Ensure that pay-out of funds/securities is received in your account within 1 working day from the date of pay-out.
• Be careful while executing the PoA (Power of Attorney) – specify all the rights that the stock broker can exercise and timeframe for which PoA is valid. It may be noted that PoA is not a mandatory requirement as per SEBI / Exchanges.
• Register for online applications viz Speed-e and Easiest provided by Depositories for online delivery of securities as an alternative to PoA.

• Do not keep funds idle with the Stock Broker. Please note that your stock broker has to return the credit balance lying with them, within three working days in case you have not done any transaction within last 30 calendar days. Please note that in case of default of a Member, claim for funds and securities, without any transaction on the exchange will not be accepted by the relevant Committee of the Exchange as per the approved norms.

• Check the frequency of accounts settlement opted for. If you have opted for running account, please ensure that your broker settles your account and, in any case, not later than once in 90 days (or 30 days if you have opted for 30 days settlement). In case of declaration of trading member as defaulter, the claims of clients against such defaulter member would be subject to norms for eligibility of claims for compensation from IPF to the clients of the defaulter member. These norms are available on Exchange website at following link: NSE, MCX

• Brokers are not permitted to accept transfer of securities as margin. Securities offered as margin/ collateral MUST remain in the account of the client and can be pledged to the broker only by way of ‘margin pledge’, created in the Depository system. Clients are not permitted to place any securities with the broker or associate of the broker or authorized person of the broker for any reason. Broker can take securities belonging to clients only for settlement of securities sold by the client.

• Always keep your contact details viz. Mobile number/Email ID updated with the stock broker. Email and mobile number is mandatory and you must provide the same to your broker for updation in Exchange records. You must immediately take up the matter with Stock Broker/Exchange if you are not receiving the messages from Exchange/Depositories regularly.

• Don’t ignore any emails/SMSs received from the Exchange for trades done by you. Verify the same with the Contract notes/Statement of accounts received from your broker and report discrepancy, if any, to your broker in writing immediately and if the Stock Broker does not respond, please take this up with the Exchange/Depositories forthwith.

• Check messages sent by Exchanges on a weekly basis regarding funds and securities balances reported by the trading member, compare it with the weekly statement of account sent by broker and immediately raise a concern to the exchange if you notice a discrepancy.

• Please do not transfer funds, for the purposes of trading to anyone, including an authorized person or an associate of the broker, other than a SEBI registered Stock broker.

• Do not deal with unregistered intermediaries (who are not registered with SEBI/Exchanges).

Names and contact details of all Key Managerial Personnel including Compliance Officer

Sr. No.Name of the IndividualDesignationContact NumbersEmail Id
1 Charanpreet GillCEO/
2 Charanpreet GillWhole Time
3 Charanpreet GillCompliance
4Manpriya GillDesignated
5Kewal GillDesignated

We are here to assist you !
Fill out the form and Start Trading...