Public company

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Related to Public companies: private companies

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 ?
COSO's guidance, Internal Control over Financial Reporting--Guidance for Smaller Public Companies, offers smaller public companies previously unavailable, but much needed, direction about how to design and implement cost-effective internal financial controls.
Consider additional materiality guidance for public companies related to previously issued financial statements; and
Some readers said public companies have to spend 30 to 40 percent more of their time on compliance and financial market requirements than privately held counterparts.
The Center for Public Company Audit Firms (CPCAF) is a voluntary membership organization for CPA firms that audit or are interested in auditing public companies.
Such a designation could require passage of an additional exam focused on disclosure requirements for public companies and ethical issues faced by CAOs.
For example, our advisory group that advises us in the standard-setting area includes, in addition to practicing auditors, investors and public companies that issue the financial statements.
Firms that audit public companies have been working out strategies for coping successfully in their internal operations as well as in their relations with clients and prospects.
Funding for the PAB would come from all public companies and their audit firms.

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