Public Company Definition

A public company is a company that has sold shares to the public in an initial public offering (IPO) and is now traded on a stock exchange. A private company does not have shares that are traded on a stock exchange.

The term ‘public company’ can also refer to a company that is not traded on a stock exchange but is required to disclose its financials to the public. The U.S. Securities and Exchange Commission (SEC) requires companies with more than $10 million in assets and more than 500 shareholders to disclose their financials. These companies are called ‘publicly traded companies.’