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 own the whole business, then delists it from the exchange. You'll see this announced in SEC filings and news when a public company's days of trading are numbered. It matters because if you own shares, you'll be forced to sell them at the agreed price—you can't hold them forever. For example, if TechCorp Inc. announced a going private deal at $50 per share, public shareholders would receive that amount and the stock would stop trading.