public company: meaning, definition, pronunciation and examples
C1Formal, Business, Financial, Academic
Quick answer
What does “public company” mean?
A company whose shares can be bought and sold by the general public on a stock exchange.
Audio
Pronunciation
Definition
Meaning and Definition
A company whose shares can be bought and sold by the general public on a stock exchange.
A business entity that is owned by its shareholders, has undergone an initial public offering (IPO), and is subject to specific regulatory reporting and transparency requirements.
Dialectal Variation
British vs American Usage
Differences
Term is identical and standard in both varieties. The specific types of public companies (e.g., 'PLC' in UK, 'Inc.' or 'Corp.' in US) differ.
Connotations
Identical connotations of size, scrutiny, and capital market access.
Frequency
Very high frequency in business/financial contexts in both regions.
Grammar
How to Use “public company” in a Sentence
[public company] + [verb: is listed/trades/is regulated][invest in/shareholder of/director of] + [a public company]Vocabulary
Collocations
Examples
Examples of “public company” in a Sentence
verb
British English
- The firm is planning to float on the London Stock Exchange.
- They decided to list the company.
American English
- The startup is preparing to go public next quarter.
- They will IPO the company to raise funds.
adverb
British English
- The firm is publicly traded.
- The data is publicly available in their annual report.
American English
- The company is publicly held.
- They are required to disclose that information publicly.
adjective
British English
- She holds a public-company directorship.
- Public-company governance rules are stringent.
American English
- He has public company experience.
- The public company reporting requirements are burdensome.
Usage
Meaning in Context
Business
The board decided to turn the family business into a public company to raise capital for expansion.
Academic
The study analysed the governance structures of public companies versus private equity-owned firms.
Everyday
He works for a big public company, so their financial results are in the news.
Technical
As a public company, it is subject to SEC filing requirements under the Securities Exchange Act of 1934.
Vocabulary
Synonyms of “public company”
Vocabulary
Antonyms of “public company”
Watch out
Common Mistakes When Using “public company”
- Using 'public company' to mean a state-owned or government-run enterprise (e.g., 'the NHS is a public company' - incorrect). Confusing it with 'public sector organisation'. Using it as a verb ('They public companied last year' - incorrect; correct: 'They went public').
FAQ
Frequently Asked Questions
No, they are different. A public company is owned by public shareholders. A government-owned company is owned by the state, even if it is publicly traded in some cases (e.g., 'mixed-ownership model').
'Going public' refers to the process by which a private company offers its shares to the general public for the first time through an Initial Public Offering (IPO), thereby becoming a public company.
Yes, through a process called 'privatisation' or a 'take-private' transaction, where a group (often private equity or the founding family) buys out the public shareholders and delists the company from the stock exchange.
The main advantages are access to a larger pool of capital from public markets, increased visibility and prestige, the ability to use shares for acquisitions (stock swaps), and providing liquidity for early investors and employees.
A company whose shares can be bought and sold by the general public on a stock exchange.
Public company is usually formal, business, financial, academic in register.
Public company: in British English it is pronounced /ˌpʌblɪk ˈkʌmp(ə)ni/, and in American English it is pronounced /ˌpʌblɪk ˈkʌmpəni/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “go public”
- “take a company public”
- “be listed on the exchange”
Learning
Memory Aids
Mnemonic
Think: PUBLIC shares = PUBLIC company. If the general PUBLIC can buy its stock, it's a PUBLIC company.
Conceptual Metaphor
A GLASS HOUSE (subject to transparency and public view).
Practice
Quiz
What is the primary defining characteristic of a public company?