Tuesday 25th October 2016                 Change text size:

Investment term of the day: private equity

Photo: doctor-a via stock.xchng

Private equity is an asset class – like bonds and fixed income – that consists of specialised investors putting money into a private company whose stocks aren’t traded on stock exchanges.

Private equity or venture capital firms usually deal in private equity, and it usually is done to generate high returns and provide the company with sufficient funds to expand its business.

Investopedia definition.

Wikipedia page.

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