 If a company is publicly traded then it is on the stock market  This means that the public can invest in the company with ease  Investments can be made in privately owned companies as well, but is less common because there is limited information  All information pertaining to the company must be available

 Supply and Demand  People are able to buy stock in that company  The more people buy a stock the price of stock goes up  The more people who sell there stock, the price goes down

 Must register with the SEC (Security and Exchange Commission)  The SEC will set a starting price for the companies stock  They must report all of the companies income and expenses

 Gives investors confidence in the company  The stocks of a publicly traded company are more liquid  The value of the company is much higher  4 of 6 companies would have 25 time the higher net earnings if they were public rather than private  Employees have the opportunity to be part owners  There is free advertising for publicly traded companies

 Control  If an owner has a long term plan they are not pressured by shareholders for short term earnings  Right of Non-Disclosure  Privately owned companies do not have to report any income to the public  Confidentiality  Do not have to share executive compensation or legal settlements

 Tax Structure  They are taxed at a lower rate than cooperation's  Liability  There are less law suits filed within privately owned companies  More money stays in the company