What characterizes public equity?

Public equity is characterized by securities that are traded on public stock exchanges. This means that the ownership stakes in publicly traded companies are available for purchase by the general public on established stock markets. Such markets, which include exchanges like the New York Stock Exchange (NYSE) or the NASDAQ, facilitate the buying and selling of shares, allowing investors to participate in the ownership and potential growth of large, publicly listed corporations. This participation often comes with regulated disclosures and transparency, as public companies are required to provide financial information to their shareholders and the investing public.

The distinction of public equity from other forms of investment, such as private equity, is significant. Private equity involves ownership in companies that are not publicly traded and often requires substantial capital and longer investment horizons. Public equity, on the other hand, allows for more liquidity and accessibility for a wider range of investors. While investments in public equity can carry varying degrees of risk, the defining characteristic remains the ability to trade these securities on public exchanges.