What are private assemblies and shared assemblies?

A private assembly is used only by a single application, and is stored in that application's install directory (or a subdirectory therein). A shared assembly is one that can be referenced by more than one application. In order to share an assembly, the assembly must be explicitly built for this purpose by giving it a cryptographically strong name (referred to as a strong name). By contrast, a private assembly name need only be unique within the application that uses it.