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private equity

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Financial Dictionary

Private Equity

When equity capital is made available to companies or investors, but not quoted on a stock market. The funds raised through private equity can be used to develop new products and technologies, to expand working capital, to make acquisitions, or to strengthen a company's balance sheet.

Investopedia Commentary

The average individual investor will not have access to private equity because it requires a very large investment.

See also: Equity, Shareholder's Equity

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