Public Company

A public company usually refers to a company that is permitted to offer its securities (stock, bonds, etc.) for sale to the general public, typically through a stock exchange. Usually, the securities of a public company are owned by many investors while the shares of a private company are owned by relatively few shareholders. However, a company with many shareholders is not necessarily a public company. For example, in the United States, in some instances, companies with over 500 shareholders may be required to report under the Securities Exchange Act of 1934; companies that report under the 1934 Act are generally deemed public companies. The first company to issue shares is thought to be the Dutch East India Company in 1602.