Distinguish private investments from listed ones by their features, and explain how the two kinds of market differ in character

Private holdings are illiquid, held for years, and valued by appraisal or model rather than by a traded price. Access is limited to qualified investors, minimum commitments are large, disclosure is thin and regulation lighter. In return, investors can take concentrated or controlling stakes and work actively with management. Public markets offer continuous pricing, transparency, broad access and dispersed ownership, with prices discovered on exchanges. Private markets are negotiated one deal at a time, less efficient, and rely on information asymmetry and the manager's ability to source deals. When advising a client, match these traits to their horizon, liquidity needs and governance capacity. The trap: appraisal-based values are smoothed, so low reported volatility and correlation understate the true risk.