Types of Companies- Public Company: Definition And Features - SS2 Accounting Lesson Note

A public company is a type of business organization that is publicly traded on a stock exchange. This means that anyone can buy and sell shares of the company, and the ownership is spread out among a large number of investors. Some of the key features of a public company include:

• Ownership: Public companies are owned by a large number of investors who hold shares in the company.

• Limited liability: Shareholders of a public company have limited liability, meaning their personal assets are protected in the event of business liabilities or debts.

• Management: Public companies are managed by a board of directors and executive officers who are responsible for making strategic decisions and overseeing day-to-day operations.

• Financing: Public companies can raise capital through public offerings of shares, as well as through private investment and loans.

• Regulations: Public companies are subject to a wide range of regulations and reporting requirements from government agencies and stock exchanges, which can affect their operations and financial performance.