Answer: the answer is B Shares of public corporations are traded on stock exchanges.
Step-by-step explanation:
The correct answer is b: Shares of public corporations are traded on stock exchanges.
A primary difference between a privately held corporation and a public corporation is that shares of public corporations are traded on stock exchanges. This means that the ownership interests in public corporations, represented by shares of stock, are publicly available for purchase and sale by individual and institutional investors on stock exchanges. The ability to trade shares on stock exchanges provides liquidity and allows for a broader ownership base.
On the other hand, privately held corporations are not traded on stock exchanges. The ownership of privately held corporations is typically limited to a smaller number of individuals, often founders, investors, and employees. The shares of privately held corporations are not available for public trading on stock exchanges. Instead, ownership transfers typically occur through private transactions, such as sales or transfers of shares between existing shareholders.
While both privately held and public corporations may have the ability to issue stock (c), the key distinction is that only public corporations have shares that are traded on stock exchanges (b).