In contrast to public markets, private markets are characterized by individually negotiated transactions that take place without the aid of a centralized market. Therefore, private markets will generally have:

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Private markets are characterized by individually negotiated transactions, which can have high transaction costs due to the lack of a centralized market. Since transactions are negotiated individually, there may be fewer buyers and sellers, making it harder to buy or sell assets quickly, resulting in low liquidity. Therefore, private markets generally have high transaction costs and low liquidity.

In Contrast to Public Markets, Private Markets Are Characterized by Individually