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 ?
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.
The first primary recommendation is to establish a new system of scaled securities regulation for smaller public companies.
The Securities and Exchange Commission established an Advisory Committee on Smaller Public Companies to advise it on how to apply Sarbox to these smaller companies.
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.
In the seven of eight ION regions for which board turnover was analyzed a total of 539 new independent directors were elected to the boards of the public companies examined during 2006.
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.
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.
Both the Senate bill and the SEC's proposed rule raise some uncertainties about whether auditing professionals will continue to remain actively engaged in setting standards and whether auditors will have sufficient latitude to respond to the needs of both investors and public companies.
I look forward to working with members of MCPAC to ascertain how the practice of 'naked shorting' is causing smaller public companies to go out of business or impacting others' market prices despite their good business developments, and then bringing the issue to the attention of the federal government," said Mr.
Much has been said and written lately about the regulatory burdens that are falling on smaller public companies in the wake of reform measures such as the Sarbanes-Oxley Act.
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.

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