Is Wal-Mart publicly owned? How so?

[CroSpartacus]

I recently learned that Wal-Mart is not a private company because anyone from the public can buy stocks from it. This is new to me because I did not know that having stocks sold to the public makes a company turn from private to publicly owned. This would mean that Wal-Mart would have to comply with government regulations without arguing property rights. Should the entire stock market be done away with if, what I am assuming, selling stock to the public makes a company publicly owned?

[heavenlyboy34]

Being a publicly traded company is different than being socialized. It's just a different business model. Every company you see on the stock exchange is publicly traded. They're still private companies. Unless Wal Mart took a bailout I don't know of, they're still private.

[FrankRep]

Wal-Mart Stores Inc.
http://finance.yahoo.com/q?s=WMT

Currently trading at 53.29 on the NYSE exchange.

[Acala]

I recently learned that Wal-Mart is not a private company because anyone from the public can buy stocks from it. This is new to me because I did not know that having stocks sold to the public makes a company turn from private to publicly owned. This would mean that Wal-Mart would have to comply with government regulations without arguing property rights. Should the entire stock market be done away with if, what I am assuming, selling stock to the public makes a company publicly owned?

When they say "publicly owned company" all that means is the stock is traded on the open market and any member of the PUBLIC can buy it. This is to distinguish it from a corporation in which all the stock is owned by a limited group of people. Businesses often start out as private corporations with just the founders and workers owning stock. Then, at a strategic point, they "take it public" with an initial offering of stock to everyone. After that, the stock trades freely.

There are differences in the way private versus public corporations operate - particularly with respect to disclosure of finances. But there is no greater government ownership or control of the operation itself and it is still private property.

[CroSpartacus]

Then if a private company has stock that the public buys, do the new stockholders dictate the company policy or do the original owners retain control? I am wondering whether stockholders from the public sign an agreement saying that they own the stock but have no say in what the company does? Therefore the company retains private control.

The recent court decision on Wal-Mart allegedly not doing enough to equalize wages made me wonder whether the Wal-Mart stockholders should decide its policies?

[Acala]

Then if a private company has stock that the public buys, do the new stockholders dictate the company policy or do the original owners retain control? I am wondering whether stockholders from the public sign an agreement saying that they own the stock but have no say in what the company does? Therefore the company retains private control.

The recent court decision on Wal-Mart allegedly not doing enough to equalize wages made me wonder whether the Wal-Mart stockholders should decide its policies?

In a publicly-held company, share holders vote on the Board of Directors. The Board of Directors then tells the officers of the corporation what to do. This is an over-simplification because there are different kinds of shares of stock and some don't vote. But in general, publicly held companies like walmart are controlled by the directors who are elected by shareholders. This is how, for example, Steve Jobs can be thrown out of Apple Corp. When he took it public, he lost control to the shareholders.

[pahs1994]

I work for them on the distribution side and they take out money from your check to purchase stock if you wish to. I remember getting the papers in the mail to vote at the annual shareholders meeting (so i know they let us vote) but they pretty much fill it out for what they want you to vote for. you have to really look at. their stock always hovers around the 48-55 range for the last few years. i sold all of mine in favor of getting some gold and silver

[cameronb]

My understanding is every corporation, whether public or privately traded is ultimately governed the same way.... as noted above, stockholders get to decide who the board is and board decides on officers and officers run the day to day.... but even in publicly traded corporations, there are the movers and shakers who have a controlling interest and so get to decide who goes on the board... with small corporations, the stockholders, board, and officers are often one and the same.... hope this helps.

[Zippyjuan]

The Walton Family still has a majority of the shares issued I believe which while others may also own stock, they own enough to control what the company actually does.

[lx43]

Public company simply means stock is traded on an exchange that anyone can own it.

[realtonygoodwin]

Then if a private company has stock that the public buys, do the new stockholders dictate the company policy or do the original owners retain control? I am wondering whether stockholders from the public sign an agreement saying that they own the stock but have no say in what the company does? Therefore the company retains private control.

The recent court decision on Wal-Mart allegedly not doing enough to equalize wages made me wonder whether the Wal-Mart stockholders should decide its policies?

The shareholders are the owners. If one person (or family, in this case) owns 50% +1 of the shares, they can make all the decisions of the company.