Public Corporations

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Public Corporations

Public corporations are a feature in all the worlds. Public corporations are corporations that have performed a public offering and are now traded on the share market. The public offering means, that part of their shares have been offered to the public and the corporations may now have many shareholders.

Shareholders in public corporations may be the old owners (the country or enterprise), or Enterprise CEOs that have bought shares on the share market. Investment funds in countries (managed by the president) can also invest their funds in shares to try and increase their value.

Public corporations are managed by the largest shareowner. That shareowner does not need to have more than 50% of the shares but she/he must have more shares than any of the other shareholders in the corporation.

If some enterprise is the largest shareholder, the corporation will appear on the list of public corporations on the enterprise corporations' page. The list may however change frequently. If any of the other share holders increases his holdings by purchasing more shares of the corporation, she/he may become the largest share holder and the corporation will appear on her/his list of corporations and she/he may manage it from than on.

Holding more than 50% of the shares, will of course guarantee that the corporation will remain under control of the same shareholder.

Public offering can be used to raise cash by corporations or by enterprises that want to invest in new corporations without the need for large loans.

Part of the profit of the corporation can be paid out as dividend and is divided between the shareholders on the basis of the number of shares they own. Cash transfers that are possible between a private corporation and its enterprise owner are prohibited in public corporations. The cash of the corporation belongs in fact to all its shareholders.

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