In terms of regulation, how do public companies differ from private companies?

Public companies differ from private companies in that they must disclose more information. This requirement stems from their status as publicly traded entities, which necessitates greater transparency to protect investors and maintain market integrity. Public companies are required by securities regulators, such as the SEC in the United States, to provide detailed financial reports, disclosures on executive compensation, information on management and operations, and any material changes that could affect the company's financial health. These extensive reporting requirements help ensure that investors have access to essential information to make informed decisions about buying, holding, or selling stocks.

In contrast, private companies face fewer regulatory obligations and are not subject to the same level of scrutiny regarding financial disclosures. As a result, they can maintain greater confidentiality about their financial affairs and business operations, leading to the conclusion that public companies indeed disclose more information compared to their private counterparts.