A public company is a company owned by the public rather than by a relatively few individuals. There are two different meanings for this term:

• A company that is owned by stockholders who are members of the general public and trade shares publicly, often through a listing on a stock exchange. Ownership is open to anyone that has the money and inclination to buy shares in the company. It is differentiated from privately held companies where the shares are held by a small group of individuals, who are often members of one or a small group of families or otherwise related individuals, or other companies. The variant of this type of company in the United Kingdom and Ireland is known as a public limited company.
• A government-owned corporation. This meaning of a "public company" comes from the tradition of public ownership of assets and interests by and for the people as a whole, and is the less-common meaning in the United States. See public ownership.

"Publicly-owned company" can also have either meaning, although in the United Kingdom it will usually refer to ownership by national, regional or local government.

United States

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The de jure definition of a public company in the United States is defined as a public company is any company that files a Form S-1 with the Securities and Exchange Commission (SEC) and raises money from the public. A public company is also a reporting company. Thus, a public company is any company with 300 or more shareholders as defined in the US 1933 Securities Act that elects to become a reporting company. Under the US 1934 Act, any company with 500 or more public shareholders or a company with some public shareholders and assets of $5 million dollars must become a reporting company.

Public versus private companies

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A public company has several advantages. It is able to raise funds and capital through the sale of stock and convertible bonds. This is the reason why public corporations are so important, historically; prior to their existence, it was very difficult to obtain large amounts of capital for private enterprises. It has the ability to offer stock and stock options to directors, executives, and employees as part of compensation. This is much less advantageous if the company is required to treat stock options as an expense. Large stockholders, typically founders of the company, are able to sell off shares and get cash which they can put to other uses. In contrast, while ownership in a private corporation can also be sold, in part, determining a "fair value" that is acceptable to all parties can be difficult.

More on [ Public company ]

Company news - CNNMoney.com

Berkshire Hathaway for $68? Sweet!
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I don't know about you, but I don't have a spare $101,900 stuffed under my couch cushions to buy an "A" share of Warren Buffett's Berkshire Hathaway. I probably could scrounge together $3,395 for one "B" share, but I would rather not.
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Five banks failed late Friday, bringing the 2009 tally to 120.
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Fri, 06 Nov 2009 09:55:50 -0500
AIG reported its second profitable quarter in a row early Friday, as stabilization in its insurance businesses and the credit and mortgage markets helped boost results.
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Read full story for latest details.
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It's time to stop glorifying our economic doldrums with this "jobless recovery" nonsense.

BBC News | Business | World Edition

G20 summit tries to tackle rifts
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G20 finance ministers begin their meeting in Scotland, but are faced with divisions over stimulus packages and climate change.
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The US economy lost 190,000 jobs in October, taking the jobless rate above 10% for the first time since 1983.
eBay in Skype deal with founders
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eBay settles a lawsuit with the founders of Skype, ending uncertainty over the future of the internet phone company.

NYT > Business

British Bankers Defend Their Pay and Bonuses
By JULIA WERDIGIER Sat, 07 Nov 2009 06:21:28 -0000
Regulators, central bankers and citizens are criticizing bankers for continuing large compensation packages while receiving government funds.
U.S. Unemployment Rate Hits 10.2%, Highest in 26 Years
By PETER S. GOODMAN Sat, 07 Nov 2009 06:23:04 -0000
The number of unemployed rose to 15.7 million in October, as 190,000 nonfarm jobs were lost, the government said, and economists do not expect relief until next year.
Seeing the Glass Half Full Despite the Day’s Reports
By JAVIER C. HERNANDEZ Sat, 07 Nov 2009 06:25:25 -0000
The market had been expecting unemployment to top 10 percent before peaking. But the pace of job losses has accelerated and the rate is likely to go higher.

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