What type of corporation sells shares of ownership through a stock exchange?

A public corporation sells shares of ownership through a stock exchange, allowing the general public to buy and sell its stock. This type of corporation is characterized by its ability to raise capital by selling shares to investors, which can lead to increased financial resources for expansion, research, and operational needs.

Public corporations are subject to regulatory requirements imposed by government agencies, which mandate transparency in reporting financial performance and other corporate activities. This oversight is designed to protect investors by ensuring they have access to necessary information for making informed investment decisions. In contrast, private corporations do not have their shares traded on public exchanges and typically have a more limited number of shareholders, which can include family, friends, or private investors. Non-profit organizations focus on social, educational, or charitable goals rather than profit generation, and sole proprietorships are owned and operated by a single individual without share issuance or stock exchange involvement.