business






 

Question by  apple (447)

Does a publicly held company necessarily have shares?

 
+7

Answer by  patti (29325)

Yes, which makes it publicly held. When a private company "goes public," it offers the public the opportunity to purchase shares of stock and thus benefit from the success of the company, which then uses the shareholders' money to grow the business.

 
+6

Answer by  Christopher2600 (108)

Yes, a publicly held company will have shares. Additionally these shares need to be registered with the SEC according to the Securities Act of 1933. This is good because it means big fines for companies who mislead or fabricate financial information to manipulate their share prices. This makes public company shares much safer than privately 'unregulated' company shares.

 
+5

Answer by  Ron27 (465)

Yes. Only corporations can be publicly traded, and corporations, by definition, have shares and shareholders. No business entity other than a corporation is publicly traded. Many corporations with shares, however, are not publicly traded.

 
+5

Answer by  Munawer (365)

It is not necessary that a publicly held company have shares. For example, utitlity companies are government owned and they are classified as "public companies" even though public actually does not have any shares in it. On the other hand, a privately owned company floates its shares on a market it becomes a publicly held company.

 
+3

Answer by  maddof (64)

yes they might not alwqays necessaryly have shares but they know how to trade their stocks when they are in a rough situation in the middle of an account hold and they are the greatest ever with the money supply and all they should control in the money game they play

 
+3

Answer by  vicki94 (477)

Yes a publicly held company does have shares. Sometimes there shares are exclusive to the company and sometimes shares can be bought by anyone.

 
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