Elon Musk is poised to take Twitter private – here’s what that means

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Why would Musk or anyone want to take a company private? One key reason is control, which allows a buyer to impose his or her vision and singular strategy.

. Basically, anything that happens to a public company that’s of consequence to investors must be disclosed publicly.. It has few shareholders – sometimes just one. It usually is impossible to buy shares of a private company. When it is possible, it is difficult because shares don’t trade on exchanges. You have to find someone who is willing and able under restrictive securities laws to sell you their shares.Another key difference is the power the chief executive has.

Private companies have no meddlesome boards or rules governing compensation or other issues. And with few or no pesky outside shareholders, leaders of private companies don’t have to worry about the effect their decisions might have on the share price.Many, if not most, companies begin their lives as a private company – perhaps in a family garage, as

Source: News Formal (newsformal.com)

 

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