Public Company

A public company is a corporation or limited liability company that is traded on a public stock exchange, such as the New York Stock Exchange (NYSE) or the Nasdaq. Its shareholders are not only the owners of the company but also its creditors.

Key characteristics:

• Transparency: Public companies are required to file regular reports with the Securities and Exchange Commission (SEC) that provide information about their financial health, operations, and ownership. This information is publicly available.
• Accountability: Public companies are subject to the scrutiny of investors and the SEC. This means that they are required to follow certain rules and standards in order to maintain investor confidence.
• Governance: Public companies have a number of governance structures in place to ensure that they are acting in the best interests of their shareholders. These structures include boards of directors, executive committees, and shareholder meetings.
• Market responsiveness: Public companies are sensitive to market conditions and their stock prices can fluctuate wildly. This means that they are constantly subject to external forces that can influence their operations.
• Ownership: Public companies are owned by a variety of shareholders who have different goals and interests. Some shareholders may be long-term investors who are interested in the long-term growth of the company, while others may be short-term traders who are interested in making quick profits.