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Public Equity

Definition

Public equity represents ownership shares in companies that are traded on stock exchanges and accessible to the general public. These shares, often referred to as common stock, grant investors a claim on a company’s assets and earnings, along with voting rights on corporate matters. The valuation of public equity is determined by market forces, reflecting investor sentiment and company performance. It serves as a primary mechanism for companies to raise capital from a broad investor base and for individuals to participate in corporate growth.