Final answer:
A corporation with widely distributed ownership through stock exchanges is known as a publicly traded corporation. These organizations, such as IBM and Microsoft, have many shareholders, none of whom typically hold a majority stake, making them key players in the economy.
Step-by-step explanation:
A corporation whose ownership is widely distributed through a stock exchange or through over-the-counter markets to a large number of stockholders is called a publicly traded corporation. Such corporations have millions of shares of stock that are bought and sold by investors, allowing them to become part-owners, or shareholders, of the company. This method of raising capital is particularly common among corporate giants like IBM, AT&T, and Microsoft, where no single individual holds a majority of the shares, meaning that ownership is spread across a diverse group of shareholders.
When an individual buys stock, they become a shareholder and thus own a portion of the firm, although typically this represents only a small fraction of the firm's total equity. In fact, even those who hold thousands of shares will typically only possess a minor percentage of the company's overall ownership. Publicly traded corporations are essential players in the global economy, allowing firms to access vast amounts of capital and providing investors with the opportunity to share in the company's potential profits and growth.