A public company is a corporation whose ownership is organized via shares of stock that are intended to be freely traded on a stock exchange or in over-the-counter markets. The term "public" emphasizes their reporting and trading on the public markets. Public companies are formed within the legal systems of particular states and have associations and formal designations that are distinct and separate in the polity in which they reside.

A public company can be listed on a stock exchange, which facilitates the trade of shares, or not (unlisted public company). In some jurisdictions, public companies over a certain size must be listed on an exchange. Ownership of a public company is distributed among general public shareholders through the free trade of shares of stock on stock exchanges or over-the-counter (OTC) markets.

Public companies are subject to reporting requirements and must file certain reports, including annual, quarterly, and current reports, with the SEC on an ongoing basis. A company can become a reporting company by issuing securities in an offering that is registered with the SEC, like an IPO, or by registering a class of securities with the SEC.

The process of becoming a public company involves going through an Initial Public Offering (IPO), which must be approved by the Securities and Exchange Commission (SEC) and meet all regulatory requirements. One of the advantages that public companies enjoy is the ability to raise funds through the sale of the companys stock to the public.

In summary, a public company is a corporation whose shares are intended to be freely traded on a stock exchange or in over-the-counter markets, and it is subject to reporting requirements and must file certain reports with the SEC on an ongoing basis.