Final answer:
Shares sold to the public are called issued shares and represent ownership in a public company. After an IPO, shareholders can buy and sell these shares, although the firm does not receive funds from subsequent sales.
Step-by-step explanation:
The shares that have been sold to the public are known as issued shares. Once a firm goes public through an initial public offering (IPO), it sells its stock to financial investors. These shares represent part ownership in the company. When shareholders own these shares, they are granted voting rights to elect a board of directors.
The directors are responsible for making major decisions including hiring top executives to manage the company's daily operations. It's also important to understand that when these shares change hands between investors, the firm itself does not receive additional funds from these transactions.