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.