 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
|
||||
Publicly-Traded Company
A company owned by shareholders who can buy and sell their shares on an exchange.
Most large companies are publicly traded, as it offers more opportunities to raise money for growth purposes. It also requires disclosure and oversight by the SEC, as its job is to protect investors; these limit management’s flexibility and increase costs. The alternative is to be privately-owned, where management retains more control and avoids disclosure burdens but has less access to investors. Publicly-traded companies may “go private” when a large investor (like a hedge fund) successfully purchases the entire enterprise from its shareholders.