Who primarily participates in the public market?

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The public market primarily consists of individuals and companies buying and selling securities, which include stocks and bonds. This market is characterized by its accessibility to a wide range of participants, allowing anyone from individual investors to institutional investors to engage in trading.

Individuals, often referred to as retail investors, participate by purchasing shares through brokerage accounts or financial advisors, while companies can participate as both buyers and sellers of securities to raise capital or invest funds. The public market facilitates this exchange through stock exchanges, making it a vital component of the financial ecosystem.

On the other hand, while large corporations do play a significant role by issuing shares or bonds, they do not solely constitute the market. Government entities may issue securities, but their participation is more limited in the context of trading. Non-profit organizations typically do not engage in the public market as directly as individuals and companies, focusing instead on fundraising activities. Thus, the broad participation from a variety of individuals and entities in the public market underscores the importance of investment and capital flow in the economy.

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