A publicly traded company is a business that has sold shares to the public through a stock exchange, allowing anyone to buy and sell ownership stakes in the company. This process helps the company raise capital for growth and operations. The shares are typically traded on major exchanges like the New York Stock Exchange or the NASDAQ. Being publicly traded means the company must follow strict regulations and disclose financial information to its shareholders and the public. This transparency helps investors make informed decisions. Examples of publicly traded companies include Apple, Microsoft, and Tesla.