Publicly traded firms are companies that sell shares of their stock to the general public through a stock exchange, such as the New York Stock Exchange or NASDAQ. This allows investors to buy and sell ownership in the company, providing it with capital to grow and expand its operations. These firms are required to disclose financial information regularly, ensuring transparency for their shareholders. This includes quarterly earnings reports and annual filings, which help investors make informed decisions about buying or selling shares. Examples of publicly traded firms include Apple, Microsoft, and Tesla.