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What does it mean to be a publicly traded company?

A publicly traded company is a company that divides its ownership among many shareholders whose stakes in the company can be bought and sold in the stock market.

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A publicly traded company divides its ownership into shares that are traded on the public stock market. Typically, a publicly traded company began as a private company. In order to raise capital for further development, the company offered shares in its ownership on the public stock market. This is done with what is called an initial public offering (IPO). In most jurisdictions, a company must meet certain regulatory requirements before it can...

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