Public vs. private markets — What's the difference?

Imagine you're hungry — and you have two options.

You could quickly grab something from a fast food chain — it's fast, familiar, and accessible to everyone. These are public markets.

Or you can reserve a seat in a private kitchen run by a local chef. The meal takes longer, the menu is curated — and seats are scarce, often only accessible through personal contacts.

These are private markets.

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Here is the direct comparison:

‍Public markets vs. private markets

Who can invest?

→ Public markets: Anyone with a trading app

→ Private markets: Usually only professional and institutional investors

Can I sell quickly?

→ Public markets: Yes, anytime — liquid investment

→ Private markets: Often only after years, sometimes quarterly or monthly — less liquid and committed to the long term

transparency

→ Public markets: Prices change every second

→ Private markets: Values are updated monthly, quarterly (or less frequently)

What am I investing in?

→ Public markets: Public companies (e.g. Apple)

→ Private markets: Private companies, infrastructure, loans

return potential

→ Public markets: Attractive compared to cash but limited potential

→ Private markets: Historically higher than public markets, often double-digitPrivate markets may be less visible — but no less important. Around 90% of companies worldwide are private, not public.

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Many of the biggest companies you know — such as Google, Facebook, and Airbnb — were private for years. The early investors? Not private investors, but insiders.

Private markets reward patience and long-term thinking, but they also require a willingness to tie up capital over longer periods of time. Understanding this dynamic is crucial for making well-founded decisions.

Private markets require patience. And trust. But they can reward you with something that public markets often can't deliver: real long-term ownership and lower volatility.

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