Private Equity

Definition

• Equity securities that are not openly traded on a stock exchange. Private equity investments are often made by private equity firms, venture capitalists, and angel investors.

Synonyms
closed equity, non-public equity

Related Terms and Acronyms

• Angel Investors — Definition,
  • Private individuals with capital to invest in business enterprises.
• Equity — Definition,
  • The value of a property minus outstanding mortgage debt and other liens.
  • Ownership in an asset.
• Housing-equity Partnership — Definition,
  • An arrangement in which one buyer lives in a home and the other has an ownership stake as an investment. The partners split the capital gain after the property is sold.
• Initial Public Offering (IPO) — Acronym,
  • When shares of a corporation become available to the public for the first time.
• Return on Equity (ROE) — Acronym,
  • A ratio that shows how profitable a company is when compared to shareholder equity.
• Security — Definition,
  • Property designated as collateral.
  • A tradable financial implement that represents ownership, the rights to ownership or debt.
  • A document stating ownership of a stock or bond.
• Seed Funding — Definition,
  • Money used to start a business.
• Startup Company — Definition,
  • A recently founded company that works on new products and services.
• Stock — Definition,
  • A share of the ownership of a company.
• Venture Capital (VC) — Acronym,
  • Financial capital given to startup companies.