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> Beyond some size (some revenue, and/or more than 500 shareholders), even a private company essentially needs to make all the disclosures that a public company
by pg314 10y ago
> Beyond some size (some revenue, and/or more than 500 shareholders), even a private company essentially needs to make all the disclosures that a public company does;...
I don't think that's true. Do you have some source that confirms this?
If you go e.g. to Cargill's website (a $100 billion private company), you won't find any detailed financial information. There are some high level numbers and their yearly report is some marketing fluff. Same thing for e.g. Ikea.
As a public company there is relentless pressure to deliver ever increasing quarterly profits above anything else. Trying to focus on anything else (e.g. sustainability or long term plans), opens you up to criticism and lawsuits from your stock holders.
- idiot_stick 10y ago>Trying to focus on anything else (e.g. sustainability or long term plans) This is such a tired meme. Public companies do all kinds of long term planning. I love the fact that Silicon Valley thinks there's nothing better for the company than a young, maverick CEO, and that an experienced board and accountability are useless.
- pathy 10y agoIKEA actually publishes a yearly report[1] that is close to what a public company would publish. But they don't have to. Regardless, the 500 shareholder thing specifically applies to American companies as far as I know. [2] [1] http://www.ikea.com/ms/en_US/pdf/yearly_summary/IKEA_Group_Yearly_Summary_2015.pdf http://www.ikea.com/ms/en_US/pdf/yearly_summary/IKEA_Group_Y... [2] http://www.investopedia.com/terms/5/500-shareholder-threshold.asp http://www.investopedia.com/terms/5/500-shareholder-threshol...