Arthur R. Pinto

Corporate Law: Publicly Traded Corporations

Abstract The article focuses on the importance of the corporate business form and publicly traded corporations where shares of stock representing its ownership interests can be traded in stock markets. Corporate law primarily deals with protection of shareholders and the need for those who manage the corporation to be able to do so. The share ownership of publicly traded corporations in the United States and in other countries may be widely dispersed without any controlling group of shareholders or concentrated with control groups and the public shareholders in the minority. Each ownership structure had advantages and disadvantages, and there are different explanations of why these differing ownership structures developed around the world. In order to protect shareholders, different approaches have been suggested. In addition, there are differing views on the extent to which corporate law should also protect stakeholders other than shareholders.