What is the characteristic of private limited companies regarding the trading of their shares?

Private limited companies have a distinctive approach to the trading of their shares, which is characterized by the fact that their shares are traded through private transactions rather than being publicly listed on a stock exchange. This means that ownership of shares is typically restricted to a specific group of individuals, which can include friends, family, or a limited number of private investors.

This arrangement helps maintain a level of control over who can become a shareholder and may also protect the company from market fluctuations that public companies face due to their shares being traded on the open market. Additionally, it allows private limited companies to keep their financials more private, as they are not required to disclose their financial information to the public in the same way that public companies must.

In contrast, the other options describe characteristics that do not align with the nature of private limited companies. Public trading on stock exchanges or open market sales is reserved for public limited companies, while government ownership is not a characteristic of private limited companies. Hence, the private nature of transactions is a core defining feature of private limited companies regarding how their shares are traded.