Wall Street may get the headlines, but did you know that of the 27 million businesses in the U.S., less than 1 percent are publicly traded on the major exchanges? The rest are privately held, and these private companies represent a vital segment of the U.S. economy.
Here are four reasons to learn more about private companies.
Private firms dominate. Out of the 27 million firms in the U.S., nearly all are privately held. Even among the 5.7 million firms with employees, less than 1 percent of them have shares listed on a U.S. exchange. And private firms are a growing majority of U.S. firms. The number of companies listed on U.S. exchanges has fallen from more than 7,000 in 2000 to fewer than 5,000 in 2012, according to statistics from the World Federation of Exchanges.
It’s true that many private firms are small. But one look at Forbes’ annual list of the biggest private companies in the U.S. shows that some really big companies are privately held. In fact, private firms accounted for 86.4Read More »from 4 Reasons Private Companies Matter – A Lot