Publicly traded companies are businesses that sell shares of their stock to the general public through stock exchanges, such as the New York Stock Exchange or NASDAQ. This allows anyone to buy a small ownership stake in the company, which can lead to potential profits if the company performs well. These companies are required to follow strict regulations and disclose financial information to ensure transparency for investors. This includes regular reports on their earnings, expenses, and overall financial health, which helps investors make informed decisions about buying or selling shares in the company.