ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What are Public Companies? Public companies are entities that trade their stocks on the public exchange market. Investors can become shareholders in a public company by purchasing shares of the company’s stock.

Detailed explanation-2: -A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets.

Detailed explanation-3: -Public market is the exchange where a public company’s securities are traded. A company must first conduct an initial public offering (IPO) to offer securities in the public market. They must also comply with the Exchange Act’s periodic reporting requirements on an on-going basis.

Detailed explanation-4: -A private company that decides to go public can do so by selling shares to the public through an Initial Public Offering (IPO). A good example of a public company is Walmart. Although the major U.S. retailer was founded as a private company in 1962, its founders wanted to expand the business.

Detailed explanation-5: -In essence, an IPO means that a company’s ownership is transitioning from private ownership to public ownership-i.e., “going public."