What is Private Equity?

[Suba]

Private equity is an alternative to investing in stocks that are not traded on the capital market or stock exchange, so investors also have equity in the company. Most private equity investors consist of institutional, equity companies, pension funds, accredited whales. In general, to become an accredited investor, you must be able to deposit a minimum of $300,000, which is used to fund working capital, purchase of equipment and machinery, or acquire companies.

The advantage of private equity is that it can fund small companies and startups, so it is preferred by small and medium entrepreneurs to get liquidity without having to sell shares to the public.

The disadvantages of Private Equity are that it will be difficult for investors to sell their private equity to the public, there is no order book, so they have to wait for other companies to buy their equity.

 

[flower]

Private equity could be a very dangerous form of investment because I don't think it is regulated.

 

[Suba]

Private equity could be a very dangerous form of investment because I don't think it is regulated.

Private equity is carried out by institutional and whales not retail investors so they have experience, so of course their agreement is under applicable law made by a notary, so in my opinion it is not dangerous, in fact private equity investors can also participate or help manage issuer companies.

 

[Stardom22]

I think the private equity kind of investment is not appealing and conveniently for me. Mostly this kind of investment deprives the ease for investors selling their private equity to the public.

 

[Suba]

I think the private equity kind of investment is not appealing and conveniently for me. Mostly this kind of investment deprives the ease for investors selling their private equity to the public.

Not only for you but also for me Private equity is not suitable and uncomfortable because it requires very large capital, unlike shares sold in the capital market we only need funds to buy at least 1 lot of shares, so basically private equity is somewhat similar to ventures capital.

 

[Stardom22]

I think for people like us that we have limited financial resources and assets we can start with the investments in shares and mutual funds. I think most of us can afford this for the time being.

 

[flower]

I think for people like us that we have limited financial resources and assets we can start with the investments in shares and mutual funds. I think most of us can afford this for the time being.

It is true that people who have no budget can invest in mutual funds and shares.

 

[Stardom22]

For me I think the private equity is done by the rich and financial stabled people. This is because in the sense that there is no order book and you must wait for other companies to buy the equity.