Unlike shares of private corporations, which are not traded on a public market, shares of public corporations are exchanged on an exchange ok (or "over the counter" in an electronic trading system).
What is the difference between a Public and Private corporation ?
- A private corporation is typically owned by its founders, management, or a collection of individual investors.
- A corporation that has sold all or a portion of itself to the general public through an initial public offering is referred to as a public company.
- The main benefit of public firms is their capacity to access the financial markets by issuing equity or debt securities to raise money (cash) for projects like expansion and other ones.
- Privately owned businesses are, unsurprisingly, privately owned. This indicates that the company is often owned by its founders, management, or a collection of individual investors.
- On the other hand, a public corporation is one that has sold all or a portion of itself to the public through an initial public offering (IPO).
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