Types of Corporations

Glossary of Key Terms

• Public Corporation: A type of corporation whose ownership shares are available for trading on public stock exchanges, making them accessible to a wide range of investors.
• Private Corporation: A type of corporation whose ownership shares are not publicly traded and are typically held by a smaller, select group of investors.
• For-Profit Corporation: A type of corporation whose primary objective is to generate financial profits for its shareholders or owners.
• Non-Profit Corporation: A type of corporation organized for charitable, educational, religious, literary, scientific, or other specific non-commercial purposes, with no profit distribution to its members.
• Shares: Units of ownership in a corporation that represent a claim on a portion of the corporation's assets and earnings.
• Stock Exchange: A marketplace where buyers and sellers meet to trade shares of publicly listed companies.
• Regulations: Rules and laws imposed by government authorities that govern the operations and reporting requirements of corporations.
• Reporting Requirements: The obligations of corporations to disclose financial and other relevant information to regulatory bodies and, in the case of public companies, to the public.
• Investors: Individuals or entities that provide capital to a corporation with the expectation of future returns.
• Liquidity: The ease with which an asset, such as a corporation's shares, can be bought or sold without significantly affecting its price.

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