Private equities are holding of stocks in unlisted companies that are not listed with the stock exchange. Private equity is not easily converted into cash and is regarded as a long term investment. Such investments are not liable for the high levels of government rules as compared to stocks offered to the public. Moreover, there are many limitations on transfer of private equity. Investors of private equities in general get returns through one of three means, an IPO, a sale or merger or a re-capitalization. |
