Final Answer:
Public companies have their shares traded on a public stock exchange, allowing widespread ownership and trading among the general public.
Thus option d is correct.
Step-by-step explanation:
A public company is a corporation whose shares are traded on a public stock exchange, allowing the general public to buy and sell its shares. This offers liquidity to shareholders as they can easily trade their ownership stakes. Public companies must adhere to strict regulatory requirements, including financial disclosures and transparency, to protect investors and ensure fair trading practices.
Public companies go through an initial public offering (IPO) to issue shares to the public, determining the stock's price through valuation methods like discounted cash flow analysis, comparable company analysis, or market multiples. After the IPO, the stock price fluctuates based on market demand and supply, influenced by factors like company performance, industry trends, economic conditions, and investor sentiment.
Investors can assess a public company's financial health by analyzing its financial statements, including the balance sheet, income statement, and cash flow statement. Key financial ratios such as price-to-earnings (P/E), earnings per share (EPS), and return on equity (ROE) help investors evaluate profitability, growth potential, and efficiency.
The stock exchange serves as a platform for public companies to list their shares, providing a marketplace for buying and selling securities. This listing grants companies visibility, access to capital for expansion, and a benchmark for their performance through stock price movements, making them accountable to shareholders and regulatory bodies.
Therefore option d is correct.