Publicly traded companies are businesses that have sold shares of their stock to the public through a stock exchange, such as the New York Stock Exchange or NASDAQ. This means that anyone can buy a small ownership stake in the company by purchasing its shares. These companies are required to disclose financial information regularly, allowing investors to make informed decisions. Being publicly traded provides companies with access to capital, which can be used for growth, research, or other investments. However, it also means they must adhere to strict regulations set by organizations like the Securities and Exchange Commission (SEC) to ensure transparency and protect investors.