What are publicly traded companies?
Publicly traded companies are companies with shares that can be purchased or sell to any public member. This is, unlike private companies that do not offer shares on an open market. When companies are set up, they are usually private. As they grow, they can decide to organize an initial public offer (IPO) to start selling shares to the public and becoming publicly traded companies. There are advantages and disadvantages to be in public, which must be considered when preparing for the sale of shares to the public.
If the company wants to become a public company, it must carry out a number of financial submissions. The purpose of these submissions is to protect investors by obliging companies to make their financial information available to the public so that people have this information when they decide which stocks to buy and at what price. This information is published in a document entitled Prospect, which also provides basic information about the company, products onWhite, and projection for his financial future.
If the company seems to be sound after the prospectus review, government regulators allow it to start selling shares on an open market. Many publicly traded companies have decided to replace the exchange. Their stocks can be purchased and sold on the floor of exchange between members and brokers. The company must continue to submit a financial publication in order to remain on the stock exchange. Falsification or incorrect inclusion of financial information may be a reason for eliminating and legal sanctions.
publicly traded companies often create IPOs to raise funds for expansion, investment and other needs. However, as soon as the company has been published, it must publish financial information, even if this information could be used by competitors. It is also threatened to be taken over if it offers too many shares, alsni people the opportunity to buyIT control interest. Public traded companies are also subject to greater financial control, which may not be according to the taste of each company.
It is possible to obtain shares in a private company, but only with the consent of the owners. Private companies usually have relatively few shareholders, all of whom have great interests in society. For example, a family company would have family members as shareholders. On the other hand, publicly traded companies have a number of shareholders who have only very small shares in the company.