What is a publicly held company?

• A. A publicly held company is a private company with limited shares.
• B. A publicly held company is a business whose shares are sold to the public on a stock exchange.
• C. A publicly held company is owned by the government.
• D. A publicly held company is a family-owned private firm.

Answer: (B)

A publicly held company means its shares are sold to the general public and traded on a stock exchange. This opens ownership to many investors, rather than being held by a small group or a single owner. It also typically requires broader disclosure and regulatory compliance. The other descriptions refer to private, government-owned, or family-owned firms, which do not have shares traded on public markets.