{"id":1292,"date":"2020-12-15T11:26:56","date_gmt":"2020-12-15T11:26:56","guid":{"rendered":"http:\/\/nz.legalvision.com.au\/?p=1292"},"modified":"2024-05-06T19:53:48","modified_gmt":"2024-05-06T06:53:48","slug":"differences-between-a-public-company-and-a-private-company","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/corporations\/differences-between-a-public-company-and-a-private-company\/","title":{"rendered":"Public vs Private Companies in NZ"},"content":{"rendered":"\n

While most companies in New Zealand are private, it is often the public companies that draw attention and news headlines, such as when a company\u2019s share price dives, or declares record profit. However, it can often be confusing to understand the differences between private and public companies, and what actually changes when a company \u201cgoes public\u201d. This article sets out the key differences between private and public companies.<\/span><\/p>\n\n\n\n

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Raising Money from the General Public<\/span><\/h2>\n\n\n\n

The most well-known distinction between private and public companies is the ability for the general public to invest in the latter. Public companies \u201clist\u201d themselves on a stock exchange, such as the NZX in New Zealand. Almost anyone can then buy or sell stocks in that company through this exchange. Private companies c<\/span>annot trade on stock exchanges, and cannot easily raise money from the public.<\/span><\/p>\n\n\n\n

Being a public company means having to abide by much stricter rules and regulations i<\/span>n comparison to private companies. The reason why public companies are willing to do this is because being able to raise money from the public is extremely valuable. Some advantages of listing as a public company include:<\/span><\/p>\n\n\n\n