Are public or private markets more efficient? Why?

Rajeshdesa29 Nov, 2021Finance

Investing in the public markets is quite different when compared to making a private markets investment. Private markets can give you higher returns when compared to their public counterparts. They also take a longer time to reach their maturity stage. On the other hand, public market investors get to arbitrage their assets and benefit from a quick trade. Making a private markets investment is like buying a stake in the company and depending on your contract type, you can even have a say in how the company operates. The efficiency of each market depends largely on the investor and the strategy used, both the markets have their own set of pros and cons. To help you understand which market is more efficient for you, here are the 4 main differences between private markets and public markets