Private Equity

Equity securities of companies that are not listed on a public exchange. Transfer of private equity is strictly regulated; therefore, any investor looking to sell his/her stake in a private company has to find a buyer in the absence of a marketplace. Returns on private equity generally occur in three ways: a merger or sale, an initial public offering, or a recapitalization.

This Glossary is provided by www.InvestorWords.com
Copyright©1997-2007 by WebFinance Inc. All Rights Reserved.

Related Terms