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Public Corporation – Meaning, Features & Advantages
Sep 20, 2024
You’ve probably heard of some big public corporations like Apple, Coca-Cola, or McDonald’s. But do you know what a public corporation actually is and the key features that set it apart from other business structures? In this article, we’ll break down what public corporations are all about in simple terms. We’ll look at how they are defined, the unique aspects that characterize them, and the major upsides they offer as a corporate structure choice for large companies.
Whether you’re an entrepreneur exploring options or an investor seeking to better understand public entities, you’ll walk away with a clear understanding of public corporations and how they operate.
Definition of Public Corporation
A public corporation, also known as a state-owned enterprises (SOEs) or public purpose corporations, is a business owned by shareholders who buy and sell stock in the corporation. Instead of being privately held, public corporations sell shares of ownership to the general public and trade on a public stock exchange like the New York Stock Exchange.
Anyone can invest in a public company by purchasing shares, allowing these businesses to raise large amounts of capital from a diverse range of investors. In exchange, shareholders have certain voting rights and share in the profits through dividends and stock price appreciation.
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