investing
private equity
Investment in companies that are not listed on public stock exchanges, typically with the goal of restructuring and selling them for profit.
Example
"The private equity firm bought the struggling retailer, turned it around, and sold it five years later."
💡 Memory Tip
PRIVATE equity = ownership in PRIVATE companies, not ones you can buy on the stock market.
Etymology
Private (not public) + equity (ownership) — ownership in private (non-public) companies.
Common Misspellings
private equtyprivat equityprivate equiityprivate equety
Related Terms
See Also
buyout