Final answer:
Stocks that can be bought and sold by the general public are known as publicly traded stocks. Public companies are owned by shareholders who vote for a board of directors, and decisions on financial matters are made by the board and company executives. Private companies do not have publicly traded stocks.
Step-by-step explanation:
Stocks that are readily available to the general public and that are bought and sold on the open market are known as publicly traded stocks (C). Companies that are publicly traded, also known as public companies, allow investors to buy and sell shares of the company on the open market.
Shareholders of a public company are a very diverse group which can range from small individual investors to large institutional investors. They collectively own the company and vote for a board of directors, whom they entrust to hire top executives to manage the day-to-day affairs. The decisions on when to issue stock, pay dividends, or reinvest profits are typically made by these top executives and the board.
By contrast, private companies do not have shares that are traded on the public stock exchanges. Ownership of private companies is typically held by a smaller group of investors, and their stocks are not readily available for purchase by the general public. Publicly traded companies, on the other hand, have to adhere to strict regulations and disclose financial information regularly, allowing a competitive market with numerous buyers and sellers influenced by a variety of factors.