A private company is a type of business organization that is owned by a small group of individuals or entities. Unlike public companies, private companies do not sell shares to the general public on stock exchanges. This means that ownership is typically limited to a few investors, such as family members, friends, or private equity firms. Private companies have more flexibility in their operations and decision-making processes since they are not subject to the same regulatory requirements as public companies. They can focus on long-term goals without the pressure of quarterly earnings reports, allowing for a more stable growth trajectory.