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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
According to a report by New York University's Pollack Center for Law & Business and Cornerstone Research, the SEC filed 55 new actions against public companies and subsidiaries in the second half of FY 2018, reversing a decline in filings that began in the second half FY 2017 and continued into the first half of FY 2018.
Fujairah registered figures of Dh10 billion for public companies and Dh1.96 billion for private companies, while the other emirates did not have any public companies registered at the SCA.
The public company results varied by size, with the 17 public companies that had revenues greater than $25 billion reporting a 10% rise in their audit fees, while the 13 public companies with revenues between $5 billion and $14.9 billion saw their fees decline by 9%.
public companies will eventually be required to adopt.
These include: tax changes in 2008, XBRL, best practices for small public companies and understanding the risks and benefits of going private.
While the small public company audit market is much less concentrated, the four largest accounting firms continue to audit almost all large public companies. According to GAO's survey, 82 percent of large public companies--the Fortune 1000--saw their choice of auditor as limited to three or fewer firms, and about 60 percent viewed competition in their audit market as insufficient.
In July 11, 2006, COSO released their Internal Control over Financial Reporting--Guidance for Small Public Companies. The COSO implementation tool covers the unique needs of small companies' financial reporting requirements and is therefore focused on achieving understandable and efficient SOX compliance.
The guidance, released at a July 11 Web cast, is intended to assist smaller public companies to implement more effective internal control systems and ultimately to result in more proficient compliance with the Section 404 internal control reporting requirements of the Sarbanes-Oxley Act.
Fourth, significant damages are always a potential in class action securities cases, and such potential damages have only been increased by the volume of investments pouring into mutual funds and the resulting market capitalization of most public companies. The magnitude of the potential exposures could increase the willingness of directors and officers to contribute.
In 2002 the Sarbanes-Oxley Act was passed, and it included provisions for increased audit documentation guidance for audits of public companies. Several state boards of accountancy adopted or proposed documentation regulations for all audits within their jurisdictions.
Charles Wilson: Four major public companies are currently dominating the accounting field.
The SEC is extending the deadline for small public companies to comply with Sarbanes-Oxley (SOX) Section 404 internal control rules until July 2007.

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