Going private transaction

A going private transaction is when a company that trades publicly on a stock exchange is bought out and removed from public trading. This typically happens when a buyer (often private equity firms, founders, or other companies) purchases enough shares to take full control, then delists the stock so it's no longer traded by regular investors. You'll see this announced in SEC filings and news headlines because it directly affects shareholders—your shares either get bought at an agreed price or converted to private ownership. For example, if TechCorp's founder and a private equity group jointly bought all remaining public shares at $50 each, TechCorp would go private. It matters because you lose the ability to buy or sell shares freely once it happens.