What type of company has its shares publicly traded?

A public company is characterized by having its shares publicly traded on a stock exchange. This means that anyone can buy or sell shares of the company, providing it with access to a broader spectrum of capital through the investment of the general public.

Public companies must adhere to strict regulations and transparency requirements set by financial regulators, which help ensure that potential investors have access to essential information about the company’s performance and financial health.

In contrast, a private company does not trade its shares on public exchanges and typically has a limited number of shareholders. Non-profit organizations are not designed to make a profit for owners or shareholders, and their funding usually comes from donations, grants, or membership dues rather than through equity financing. Meanwhile, a limited liability company (LLC) is a legal structure for a business that protects its owners from personal liability, but it is not inherently related to a public or private trading status as seen in the case of public companies.