What are non-publicly traded companies?

A non-publicly traded company is like a secret club where only certain people can join, and no one outside knows what's going on inside.

Imagine you have a lemonade stand with your best friend. You both run it together, and only the two of you know how much money you're making each day. That’s like a non-publicly traded company, it’s owned by a few people, and they don’t share their secrets with everyone else.

Public companies are like big playgrounds where everyone can see what's happening. They tell everyone how much money they make, so kids from all over the neighborhood know how popular the swings are.

But non-publicly traded companies are more like private playgrounds, only some kids get to join, and no one else knows how many swings there are or how much fun everyone is having.

Some of your favorite stores might be non-publicly traded. For example, a family-owned pizza shop that's been around for years isn’t sharing its recipe with the whole world, just like how your lemonade stand keeps its secrets to itself!