Public company


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Public Company

A company that has held an initial public offering and whose shares are traded on a stock exchange or in the over-the-counter market. Public companies are subject to periodic filing and other obligations under the federal securities laws.

Public Limited Company

A primarily British term for a publicly-traded company. The term derives from the facts that the company issues shares that may be bought and sold by the general public and all shareholders have limited liability.

Publicly-Traded Company

A company issuing stocks, which are traded on the open market, either on a stock exchange or on the over-the-counter market. Individual and institutional shareholders constitute the owners of a publicly-traded company, in proportion to the amount of stock they own as a percentage of all outstanding stock. Thus, shareholders have final say in all decisions taken by a publicly-traded company and its managers, especially through its annual shareholders' meeting. Publicly-traded companies have greater access to financing than other companies, as they have the ability to issue more stock. However, they are subject to greater regulation: for example, they must file 10-K reports with the SEC on their earnings and they are more likely to be subject to corporate taxes. A publicly-traded company is also called a public company.

Public company.

The stock of a public company is owned and traded by individual and institutional investors.

In contrast, in a privately held company, the stock is held by company founders, management, employees, and sometimes venture capitalists.

Many privately held companies eventually go public to help raise capital to finance growth. Conversely, public companies can be taken private for a variety of reasons.

References in periodicals archive ?
Adopt policies that encourage and promote dissemination of smaller public company research;
Key issues identified in the public company sample reports include utilizing the web to deliver information; allowing users to clickthrough for more report details; providing a range of estimates rather than a single number in reporting earnings projections; and leveraging XBRL to help users identify the financial information most relevant to them.
The new rules promoting the ethics and independence of public company auditors "draw clear lines to distinguish inappropriate services that impair auditor independence from permissible services that are not detrimental" according to PCAOB Chair William J.
Kueppers, chairman of the Center for Public Company Audit Firms Executive Committee.
However, SECPS member firms made it clear that the AICPA should play an important role for them in the new regulatory environment by representing public company audit firms before the SEC and PCAOB, keeping them abreast of issues, and maintaining a peer review program for the firms' non-issuer practices that enables them to meet their state licensing, federal regulatory and AICPA membership requirements.
Sarbanes-Oxley and the subsequent standards from the Public Company Accounting Oversight Board (PCAOB) add a new layer of complexity to firm management: Auditors of public companies have new rules to follow while other firms must keep a careful eye on the changing environment.
The SEC proposal followed on the heels of the Senate Banking Committee's approval of legislation creating a new Public Company Accounting Oversight Board with authority to establish auditing and ethics rules.
OTCBB: USXP), based in New York and Florida, and a member of The National Small Public Company Leadership Council (Leadership Council) and the Microcap Company Political Alliance Corp.
In its response to the questionnaire, FEI's Small Public Company Task Force supported this recommendation: "The delay in the compliance date of Section 404 will provide more time .
The AICPA Center for Public Company Audit Firms began operations January 1, 2004, as a voluntary membership organization for firms that audit or are interested in auditing public companies.
Lord & Benoit, LLC a national SOX (Sarbanes-Oxley) compliance firm is pleased to announce that it is one of the first firms in the country to implement COSO's new "Internal Control over Financial Reporting - Guidance for Smaller Public Companies" for one of its smaller public company clients.
Now, in the wake of The Sarbanes-Oxley Act of 2002, the cost and exposure of being a public company has never been higher--due to the dramatically increased regulatory, insurance and compliance costs, the surge in shareholder litigation and the overall decline in the public markets.

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