going private


Definition
The repurchasing of all of a company's outstanding stock by employees or a private investor. As a result of such an initiative, the company stops being publicly traded. Sometimes, the company might have to take on significant debt to finance the change in ownership structure. Companies might want to go private in order to restructure their businesses (when they feel that the process might affect their stock prices poorly in the short run). They might also want to go private to avoid the expense and regulations associated with remaining listed on a stock exchange. opposite of going public.

Related Terms

management buyout -

privatization -  More

Related Personal Finance Articles

Loading...

going private in the news

Loading...

going private is ...

... part of the Stocks subject.

Search volume for going private

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z