Final answer:
A corporation that offers stock to the public is known as a public company, which is owned by shareholders who have limited liability. These shareholders invest in the company by purchasing shares of stock, which represent ownership and provide voting rights within the corporation.
Step-by-step explanation:
A corporation that makes shares of stock available for the public to purchase is an example of a public company. Such corporations are owned by shareholders and offer limited liability for the company's debts, while allowing the shareholders to partake in profits and losses. Public companies raise capital by selling stock or issuing bonds, and this process allows them to fund operations or new investments. Shareholders of a public company can range from just a few individuals to millions, and they collectively vote for a board of directors, which oversees the management of the company.
Stock represents a share in the ownership of a firm, meaning that an individual who owns 100% of the stock owns the entire company. However, in large corporations such as IBM, Microsoft, and Exxon, this is generally not the case as the ownership is spread across numerous shareholders. These shareholders each have a small portion of the total company, and the more stock they own, the more influence they have over the company through voting rights.