Write a discussion response to the statement below:
Private companies, or closely held companies, are not publicly traded, which means that they do have common stock traded on an open marketplace. Because of this they are not required to disclose their financial information to the government, aside from tax returns, via the SEC. Conversely, publicly traded companies must disclose all financial information to the SEC and make it available for common stockholders. The advantage of public trading is the ability to raise funds through initial public offerings and these companies have limited liability. Also risk to the company is lower when equity financing is used since there is no contractual obligation to pay stock holders dividends. A disadvantage to public trading is the potential loss or dilution of control.