Public Corporation

A Public Corporation is a corporation that is owned by shareholders and operates for profit, with its ownership represented by shares that are typically traded on one or more public stock exchanges.

• Context:
  • It can (typically) issue Shares that are publicly traded to raise capital from investors.
  • It can (often) be required to disclose financial information regularly, as mandated by regulatory bodies such as the Securities and Exchange Commission (SEC).
  • It can (often) experience external influences from Market Forces, such as investor sentiment, supply and demand, and macroeconomic conditions.
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  • It can range from being a Multinational Corporation with a global footprint to a Small-Cap Public Corporation operating locally or regionally.
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  • It can have a Board of Directors that represents the interests of its shareholders and makes major governance decisions.
  • It can be categorized into subtypes, such as a Public Company (which trades its shares on public stock exchanges), a Statutory Corporation (created by a statute and partially or wholly government-owned), or a Government-Owned Corporation (state-owned and managed).
  • It can be structured to operate in various sectors such as technology, finance, manufacturing, healthcare, and energy.
  • It can attract both domestic and international investors, depending on its global reach and listing regulations.
  • It can be susceptible to hostile takeovers or shareholder activism due to the public availability of its shares.
  • It can face stricter Corporate Governance requirements compared to private companies due to public investor involvement.
  • It can be subject to additional scrutiny from Shareholders, Analysts, and Media, particularly during times of financial instability or leadership transitions.
  • It can conduct Initial Public Offering (IPO) to transition from private ownership to public trading.
  • It can be subject to Proxy Voting and Shareholder Proposals, allowing investors to influence decisions such as executive compensation and strategic direction.
  • It can undergo Privatization if shareholders or the board decide to delist from public trading.
  • It can utilize Investor Relations teams to manage its public image and shareholder communications.
  • It can operate under different regulatory frameworks depending on its headquarters, with entities like the Financial Conduct Authority (FCA) or the European Securities and Markets Authority (ESMA) overseeing compliance in other jurisdictions.
  • It can vary in size, scope, and industry, from Blue-Chip Corporations to Mid-Cap Corporations with specialized market focuses.
  • It can experience Volatility in its share price due to the dynamic nature of public trading.
  • It can opt for Dual-Class Stock Structures, allowing certain shareholders to retain greater control over the company despite owning a smaller percentage of the total shares.
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• Example(s):
  • a Public Company that trades its shares on the New York Stock Exchange, providing public ownership and liquidity for its shareholders.
  • a Government-Owned Corporation such as a Statutory Corporation operating under public sector control but with the potential for private investment.
  • a Multinational Public Corporation with operations across multiple regions, listed on different international stock exchanges.
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• Counter-Example(s):
  • Private Corporations, which are not listed on public exchanges and have fewer disclosure obligations.
  • Non-Profit Corporations, which operate to achieve social goals rather than distribute profits to shareholders.
  • Mutual Companys, which are owned by policyholders or customers rather than by external shareholders.
  • Limited Liability Company (LLC)s, which are structured for private ownership and cannot issue shares publicly.
• See: Public Company, Government-Owned Corporation, Corporate Governance, Initial Public Offering (IPO), Shares, Stock Exchange, Securities and Exchange Commission, Privatization.

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References

2024

• (Wikipedia, 2024) ⇒ https://en.wikipedia.org/wiki/Public_corporation Retrieved:2024-9-29.
  • Public corporation may refer to:
    • Government-owned corporation
    • Public company, i.e. a limited liability company that offers its securities for sale to the public
    • Statutory corporation, i.e. a corporation created by statute that is owned in part or in whole by a government, such as municipal councils, bar councils, universities)

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