Investors in stock markets generally look for the highest returns – which investments can make the most money at a given level of risk. It’s the same with owners of privately held firms. Outside investors decide whether they can make more money investing in private company A than in company B. A business owner, too, weighs the amount of profit a company is generating relative to what they’ve put into the business.
Investors in stock markets generally look for the highest returns – which investments can make the most money at a given level of risk. It’s the same with owners of privately held firms. Outside investors decide whether they can make more money investing in private company A than in company B. A business owner, too, weighs the amount of profit a company is generating relative to what they’ve put into the business.
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