Investing in private equity

Raising funds through equity is probably an easier option for any company today. People and institutions who provide money to companies through equity become shareholders/ owners in the company to the extent of their funding.

And when this equity is raised through private sources, i.e. not through stock markets then it is called Private Equity. Private equity is defined as an asset class consisting of equity securities and / or debt in operating companies that are not publicly traded on a stock exchange.

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