Private equity consists of investments made instantly into non-public companies that aren’t quoted on a public trade. The majority of personal equity consists of institutional investors and accredited investors who can commit giant sums of money for lengthy intervals of time. Private equity investments typically demand lengthy holding intervals to allow for a turnaround of a distressed company or a liquidity event such as an initial public offering or sale to a public company. These are short-term price modifications mirrored in the day by day market pricing of fixed-income securities prior to maturity.