Unlike firms that sell stock in financial markets,which are known as ________ firms,companies like Facebook which do not sell stock in financial markets are known as ________ firms.

Question

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Public firms sell their stock in financial markets, allowing anyone to buy shares and become a part owner. Private firms, on the other hand, do not sell their stock in financial markets and instead have a limited number of owners who have invested directly in the company. Facebook is an example of a private firm, as it is majority-owned by its founders and early investors and does not have shares trading on stock exchanges.

Unlike Firms That Sell Stock in Financial Markets,which Are Known