A private corporation is owned by just one or a few people, who are closely involved in managing the business. These people, often a family, own all the corporation’s stock, and no stock is sold to the public. Many corporations are quite large, yet remain private, including Cargill, the nation’s largest private corporation, which sells nearly $60 billion in agricultural and industrial products every year. Privately owned corporations are not required to disclose financial information publicly, but they must, of course pay taxes. A public corporation is one whose stock anyone may buy, sell, or trade. Walmart is one of the United States largest corporations with more than $258.7 billion in revenues.

A private corporation that needs more money to expand or take advantage of opportunities may have to obtain financing by going public through an initial public offering (IPO), that is, becoming a public corporation by selling its stock so that it can be traded in public markets. For example, SoulCycle Inc., an Indoor cycling fitness chain,  announced that they are offering an IPO, the proposed maxim aggregate offering price is $100,000,000.00, and the amount of registration fee is $11,620.00. There are risk to investing, the success depends on the value and reputation of the SoulCycle Brand. Maintaining, promoting their brand, will depend largely on their ability to provide consistent, high quality rider experience and marketing merchandising and community building efforts.

Their brand could be adversely affected if they fail to achieve these objectives or if their public image or reputation were to be tarnished by negative publicity. They have benefited in the past from celebrities riding in their studios. If they lose intellectual property, if their efforts are not successful, they value of their brand may be harmed, and that could effect financial condition and growth rate.

They may be unable to attract and retain riders, which could have a negative effect on their business and growth rate, and that could lead to a decline. The main point is if their reputation is harmed, there will be a decline in services. Their business is geographically concentrated and a failure to gain acceptance in new markets may have an adverse effect on their business and growth rate.  If they cannot find demand or gain acceptance, this will have an adverse impact on business.