A public company’s shares trade on an exchange where anyone can buy, prices print continuously, and disclosure is mandated quarterly. A private company’s shares change hands by contract — negotiated between specific parties, governed by the company’s own documents, with information shared selectively. Nearly everything that surprises newcomers about private markets follows from that one structural difference.
Primary vs. secondary
In a primary transaction, the company itself sells new shares to raise capital — a funding round. In a secondary, an existing holder sells shares they already own; the company gets no new money, but an employee or early investor gets liquidity. Most of what this platform demonstrates — tender offers, negotiated blocks, browse-and-bid — lives on the secondary side. Here’s the full lifecycle of one.
Who can participate
U.S. securities law generally limits private offerings to accredited investors — people meeting income or net-worth thresholds, or holding certain licenses — plus institutions. The rules exist because private investments carry less disclosure and less liquidity; verification isn’t a formality, it’s the gate. For Investors explains how accreditation checks work here.
What you give up, what you might get
Relative to public stocks, private positions typically mean less information, no continuous price, restricted resale, and long holding periods. In exchange, investors seek access to growth that happens before an IPO and returns that aren’t available on an exchange. Neither side of that trade is guaranteed — the risk of loss is real and can be total.
The vocabulary that matters first
Five terms unlock most private-market conversations: preferred vs. common stock (different rights, different values — see why a valuation is not a sale price); ROFR, a company’s right to buy shares before an outside buyer can; lockup, a period when selling is barred; tender offer, an organized window to sell (explained here); and indicative price, an estimate rather than a quote (and here’s exactly what that means).
Educational only. InvestNow is a demonstration platform. This page is general information, not investment, legal, or tax advice, and not an offer or solicitation of any security. Private-market investments are speculative, illiquid, and can lose their entire value. Consult a qualified professional about your circumstances.