The term 'publicly-held' refers to a company or corporation that has issued shares of stock that are available for purchase by the general public. Such companies are usually required to adhere to regulatory standards, including disclosure of financial information, due to their status as publicly traded entities. publicly-held companies can raise capital more easily than privately held firms by selling shares in the open market.
Publicly-held meaning with examples
- Investing in a publicly-held company often allows shareholders to have a say in important decisions made at shareholder meetings, giving them an opportunity to influence the direction of the company.
- Many investors prefer publicly-held companies because they benefit from the extensive financial transparency required by law, making it easier to assess the organization's performance and risk.
- When Ron decided to invest in a publicly-held technology firm, he was confident in his choice, knowing that such entities are subject to rigorous scrutiny and regulation.
- Publicly-held corporations may face significant challenges during economic downturns, as their stock prices can be volatile and subject to market sentiment, impacting shareholders' investments.
- The distinction between publicly-held and privately-held companies is crucial for investors, as the former usually offers more liquidity owing to their shares being traded on stock exchanges.