（#Stocks #Securities #Publicly）What Are Publicly Traded Companies? Many Everyday Things Are Actually Related to “Stocks”

From the smartphones we use without a second thought every day, to our favorite snacks, to the trains we ride daily,
the world is overflowing with all kinds of products and services.

Many of the companies that produce these items are
what are known as “publicly traded companies.”

It’s a term we often hear in the news and business magazines, but
if asked, “What kind of companies are they, exactly?” many people might find it hard to explain.

Let’s take a simple look at the basics everyone should know as part of their adult education.

What Does “Going Public” Mean?

Have you ever seen a TV news report saying, “Today, Company XXX went public on the NASDAQ!” while showing
businesspeople happily ringing a bell?

It gives the impression that it’s something impressive, but what exactly does “going public” mean in the first place?

“Going public”means that
a company becomes able to sell its stock,
“making it publicly available for anyone to buy”

“Going public” means that
the company’s“shares” can be sold on a “stock exchange (stock market)”,
and they are made publicly available so that“anyone can freely buy and sell them.”

Examples of Stock Exchanges (Stock Markets)

Country/Region	Exchange Group / Stock Exchange	Features / Representative Stocks	Example
United States	New York Stock Exchange (NYSE)	Ranked #1 in market capitalization globally. Home to many traditional large corporations such as Coca-Cola and Walmart.
United States	Nasdaq (NASDAQ)	Centered on emerging and IT companies. Companies like Apple, Microsoft, and NVIDIA are listed.
Europe	Euronext (Euronext)	Oversees markets in multiple countries including France, the Netherlands, and Belgium.
United Kingdom	London Stock Exchange Group (LSEG)	Extremely international, ranking among the world's best in foreign exchange and bond trading volume.
Brazil	B3 (B3)	The largest exchange in Latin America. Resource giants such as Petrobras and Vale are listed.
Russia	Moscow Exchange (MOEX)	The largest exchange in Russia. Centered on energy resource companies such as natural gas and petroleum.
India	National Stock Exchange of India (NSE) BSE Limited (BSE)	The largest market in South Asia, undergoing rapid growth. Has surged into the world's top tier by market capitalization.
China	Shanghai Stock Exchange (SSE)	The largest market in mainland China. Centered on state-owned enterprises and large-cap stocks.
China	Shenzhen Stock Exchange (SZSE)	Home to many tech firms and private growth companies; often referred to as China's Nasdaq.
Hong Kong	Hong Kong Exchanges and Clearing (HKEX)	An international financial hub connecting global capital with Chinese enterprises.
Japan	Tokyo Stock Exchange (JPX)	One of Asia's leading markets by scale. Companies like Toyota and Sony are listed.

Registering a company here is called “going public.”

Shares in unlisted companies (private companies) can only be held by a limited number of people, such as the company’s president and their relatives.

However, once a company goes public,
“anyone in Japan or around the world can freely buy the company’s shares to support it, or sell them to convert them back into cash.”

In other words, going public is an event in which the company becomes “everyone’s” and
opens itself up to the wider world.

What Are “Stocks”?
A Simple Explanation of How They Work

The term “stocks” came up in the explanation of what it means to be publicly listed, but
what exactly are “stocks” in the first place?

Stocks are“proof (a certificate) that you have contributed money to support a company”.

For a company to develop groundbreaking new products,
build a large factory,
or open new stores overseas,
it needs a huge amount of money.
However,
it’s not uncommon for a company’s own savings (profits) or loans from banks alone to be insufficient to cover these costs.

So, the company makes the following appeal to the public.

• “If you’d like to support our new venture, please invest your money.”
• “In return, we’ll give you ‘stocks,’ which represent a share of ownership in this company.”

People who respond to this call by investing money,
purchasing stocks,
are called“shareholders”.

What Happens When You Become a “Shareholder,” a Partner Supporting the Company?

Buying shares to become a “shareholder” doesn’t simply mean lending money;
it means purchasing a portion (ownership) of the company
and becoming a partner in its management.

Therefore, when the company achieves great success in its business and generates substantial profits,
shareholders receive various forms of returns as a token of appreciation for their support.

• Receive Dividends

  A portion of the company's profits is returned to you in cash as a token of appreciation for your support.

• Receive Shareholder Benefits

  You can receive assortments of the company's products, as well as discount coupons and dining vouchers usable at their stores.

• Participate in Company Management (Voting Rights)

  You can attend shareholder meetings
  and cast votes on important company decisions, such as management policies.

Of course, it is not all good news.
If the performance of the company you supported worsens or the overall economy declines,
there is also a risk that the value of the stock (stock price) will drop.

In the worst-case scenario where a company goes bankrupt,
the value of the stock could even become zero.

In this way, "stocks" are a collaborative framework that allows a company and its investors to share risks and returns,
enabling them to grow together.

The Difference Between
"Borrowing Money from a Bank" and
"Raising Money Through Stocks"

Companies can also raise funds by borrowing from a bank.
However, money borrowed from a bank comes with a "mandatory obligation to repay with interest."

On the other hand,
money raised by issuing stocks is, in principle, "money that does not have to be repaid."

In exchange,
when the company makes a profit, it needs to properly return value to shareholders in forms such as dividends.

Obtaining capital (equity) that allows a company to take on challenges without being chased by debt repayments
is the single greatest advantage of issuing stocks.

You’ll find plenty of them all around you.
Products from brands you know well

Let’s take a moment to look at our everyday lives.

Are there any favorite products that you use without even thinking about it in your daily life?

For example, the delicious bottled green tea you drink when you wake up in the morning, or the carbonated drinks you buy from a vending machine when you’re thirsty.

These are made by leading beverage manufacturers such as “Suntory,” “Asahi Group,” and “Coca-Cola Bottlers.”

What about the snacks you eat when you’re hungry?

Crispy, delicious potato chips come from “Calbee” and “Koikeya,” while “Meiji” and “Lotte” are famous for their chocolate and gummy candies.

Furthermore, if you look around your home, the TV in your living room might be a “Sony” or “Panasonic.”

The refrigerator and washing machine in your kitchen might be made by “Hitachi” or “Sharp.”

If you’re a gamer, you’re probably playing on a “Nintendo” Switch or getting absorbed in games from “Capcom” or “Square Enix.”

If you look at the cars driving through the streets, you’ll see plenty of “Toyota,” “Nissan,” and “Honda” vehicles every day.

In fact, almost all of the products and services from these familiar, well-known manufacturers are produced by
“publicly traded companies.”

In fact, most of the “familiar manufacturers” we encounter in our daily lives are publicly traded companies.

Category	Examples of Well-Known Companies & Brands
Beverages	Suntory, Asahi Group, Coca-Cola Bottlers
Sweets & Snacks	Calbee, Koikeya, Meiji
Dining & Restaurants	Zensho, Skylark, Saizeriya
Home Electronics	Sony, Panasonic, Sharp
Video Games	Nintendo, Square Enix, Capcom
Computers	Fujitsu, NEC, Mouse Computer (MCJ)
Automobiles	Toyota, Nissan, Honda
Apparel	Fast Retailing (Uniqlo), Shimamura, Adastria
Daily Goods & Cosmetics	Kao, Shiseido, Unicharm

Those Famous Companies Have "Stocks"

All of the famous, household-name companies introduced above actually have "stocks."

Because these companies are publicly listed,
even ordinary individuals like us can easily buy their shares online and become shareholders (owners).

Among the example companies, only Suntory is unlisted.
(The parent company, "Suntory Holdings Limited," is unlisted.)
(Only its subsidiary in charge of soft drinks, "Suntory Beverage & Food," is listed.)

Even for giant, ultra-famous corporations with trillions of yen in revenue like Suntory,
quite a few choose to "intentionally remain unlisted and keep shares within the founding family or group."

"Not listed (unlisted)" does not mean "stocks do not exist at all."
Even unlisted companies always have "stocks" themselves. The differences are as follows:

●-Publicly Listed Companies
Because their shares are made available on a stock exchange, general investors and individuals can buy and sell them freely.

●-Unlisted Companies
Because their shares are not made public, only designated individuals—such as the founding family, executives, or affiliated companies—hold the stock.

When people hear about stocks and securities, it sounds like a conversation about wealth building.
However, with mindsets like "I love that chocolate, so I'll support Meiji" or "The new game looks like it'll be a hit, so I'll try buying Nintendo stock,"
stocks also serve as a way to support a company.

In this way, we can use securities companies as intermediaries to buy shares in companies that make products we love or companies we think are poised to grow.

Behind our everyday shopping activities,
a vast network of these "listed companies" and "stocks" is at work.

The Benefits of Becoming a Publicly Traded Company

When a company goes public and anyone can buy and sell its stock,
what kind of changes occur within that company?

Let’s take a look at the specific benefits and impacts of a company becoming publicly traded.

• 1. Can Raise Enormous Capital from Around the World

  By going public, a company can sell its shares to countless people worldwide, including individual investors, major banks, and foreign investment firms.

  This makes it possible to gather an unprecedentedly large amount of capital.

  Using the substantial funds raised, a company can expand its business possibilities—such as building cutting-edge factories, developing groundbreaking products that surprise the world, or expanding overseas to open new locations.

  It enables the company to make major moves to grow even bigger.

• 2. Company Credibility and Brand Awareness Increase Dramatically

  To go public, a company must pass extremely strict screening processes set by the government and stock exchanges.

  Over several years, it undergoes thorough checks on points like "Is this company submitting truthful reports?",
  "Is it likely to keep growing without going bankrupt?",
  and "Is it strictly complying with the law?"

  Therefore, successfully listing on an exchange is equivalent to receiving an official stamp of approval
  from the government and the market stating,
  "This is a safe, reliable, and excellent company."

  As a result, the company's name quickly spreads across society, dramatically elevating its social credibility.

• 3. Becomes Easier to Attract Outstanding Talent (Employees)

  Many job-seeking students and professionals considering career changes think,
  "If possible, I want to work for a stable, promising, and well-known company that everyone recognizes."

  Once a company becomes publicly listed, its "credibility" and "brand recognition" soar, as mentioned earlier,
  drawing numerous talented individuals from all over the country who want to work for the firm.

  With more talented employees, the company can create even better products,
  generating a wonderful virtuous cycle where the business grows stronger and stronger.

• 4. Gaining Favorable Terms for Bank Loans and Business Transactions

  When running a company, there are times when borrowing large sums of money from banks becomes necessary.

  In the case of small, unlisted companies,
  banks may worry whether the loan will actually be repaid,
  which can lead to refused loans
  or higher interest rates.

  For listed companies, financial performance and management status are fully transparent and credible,
  so banks feel confident stating "This company is safe" and are glad to lend money at lower interest rates.

  Additionally, when starting new ventures with other companies,
  agreements move forward much more smoothly with partners thinking, "Since they are a top-tier listed company, we can do business with peace of mind."

• 5. Founders and Early Team Members Can Attain Significant Wealth

  The presidents (founders) who started the company from scratch,
  along with early employees who supported it through tough times when the firm was still small, often hold a large number of shares.

  When the company goes public,
  those shares—whose value was previously uncertain—are given a concrete market valuation of "$X.XX per share."
  The moment it goes public,

  The moment a company goes public, the value of those held shares can sometimes skyrocket many times over.

  This allows early members to acquire substantial wealth (assets).

Major Disadvantages Faced by Publicly Listed Companies

Becoming a listed company is not all positive; in fact, there are many hardships and "disadvantages" hidden behind it.

Next, let's discuss the disadvantages and pressures that listed companies face.

• 1. Less Management Freedom and Facing Criticism from Many People

  Before going public, the president could run the company however they pleased.

  In extreme terms, even if the business showed a slight deficit, they could freely decide, "Since it's my company, let's bear with it this year to pursue new challenges."

  However, once the company goes public and becomes "everyone's company," many shareholders who bought stock participate in management.

  If the company's performance worsens or its stock price drops, shareholders will launch harsh criticism, saying:
  "Take this more seriously!"
  "Force the president to resign!"
  "Generate profits quickly and pay out dividends!"

  It becomes difficult to run the company freely based solely on the president's discretion.

• 2. Company Secrets Become More Easily Exposed to Rivals

  Internal assets become public knowledge.

  By law, listed companies are subject to strict obligations (information disclosure) stating,
  "You must accurately disclose your company's financial condition and profit amounts to the public."

  Without doing this, shareholders cannot buy and sell stock with confidence.

  However, doing so also means showing rival companies your full hand, effectively revealing:
  "We currently have this much money, and we are making this much profit from this business."

  Even though it applies to everyone equally, the risk increases that competitors will figure out your strategy or copy it.

• 3. Enormous Costs and Effort Required to Maintain the Company

  To maintain a public listing, a company must pay large amounts of money to the stock exchange every year.

  Furthermore, to verify that no false reports are being made,
  they must hire financial professionals called "certified public accountants"
  to audit the company.

  Specialized departments must also be established to prepare documentation and check legal compliance.
  Simply remaining listed generates huge expenses of "$X.XX" every year, along with significant labor from many employees.

  Simply put, legal paperwork increases, making things a hassle.

The “Business Benefits” of Becoming Well-Known

So far, we’ve looked at both the pros and cons of going public,
but one of the biggest attractions of becoming a publicly traded company is,
“having your name widely recognized by the general public and becoming well-known.”

In the business world,
“becoming famous”
brings tremendous advantages—far beyond what we might imagine.

For example, imagine yourself shopping.
If a store shelf displayed cosmetics made by a company you’ve never heard of, alongside
cosmetics from “Shiseido” or “Kao”—brands you see every day in TV commercials—which would you feel more confident buying?

Surely, most people would choose the “well-known, famous company.”

Humans have a psychological tendency to
“feel a sense of security toward things they know well, and unconsciously feel wary of things they don’t know.”

Simply being well-known makes a product more likely to be chosen.

• A Quick Word

  By the way,
  while this blog you are reading (Lord Article) is not publicly listed,
  please rest assured that it is by no means a suspicious site.

  It is not listed on EDINET (the disclosure system for annual securities reports, etc.) and lacks "proof of security via a public listing,"
  but it is operated by a perfectly ordinary unlisted company.

  There is no need to be on guard, and we hope you will continue to enjoy reading our content for a long time to come.

Becoming a Famous Company Opens Doors Across "Every Aspect" of Business

The benefits of "becoming famous" extend far beyond simply increasing product sales (growing revenue).
Tailwinds that accelerate growth begin to blow across every single aspect of business.

• 1. Advantages in Opening Locations in Prime Areas and Popular Malls

  Suppose a company wants to open a new store
  and requests space in a prime commercial building or a highly popular shopping mall (such as Aeon Mall).

  If the company is unknown, it might be rejected during screening due to concerns like,
  "Can they really pay rent consistently?"

  However, if the company can introduce itself as "XX, a company listed on the National Stock Exchange,"
  building owners will welcome them saying, "Please open a store in our building,"
  dramatically increasing the likelihood of securing prime locations on favorable terms.

• 2. Media and the Public Pay Attention Automatically Without Heavy Ad Spend

  The effectiveness of advertising and promotions also multiplies several times over.

  Simply by issuing a single press release stating "We are releasing a new product,"
  a famous listed company will attract TV news shows and major news sites to cover it and write articles.

  Even without spending vast sums on television commercials,
  the media picks up the topic and spreads the word on its own.

• 3. Smoother Bank Loans and Partnerships with Other Companies

  When launching large-scale projects, securing financing (loans) from banks becomes much easier.

  Additionally, proposals for collaborations (business partnerships) from top-tier industry leaders
  —such as "Would you like to do business together?"—are much more likely to come in.

"Overwhelming Brand Recognition" Is the Ultimate Business Infrastructure

In this way, the "recognition" and "trust" gained by going public are far more than mere bragging rights.

• 1. Product Sales (Makes products easier to sell)
• 2. Securing Locations (Enables renting prime real estate)
• 3. PR & Promotion (Media picks up stories automatically)
• 4. Recruiting Top Talent (Applicants gather due to a sense of security)

As shown, it functions as a powerful driving force across every phase of business.

This is precisely the major reason why many companies aim for "going public,"
even if it requires immense cost and effort.

Society Is Made Up of Publicly Traded Companies and Stocks

What did you think?

Terms like “publicly traded companies” and “stocks” may seem complicated, but when you look at them in the context of our daily lives, you’ll see that the mechanisms behind them are surprisingly simple.

Many of the products we see every day are made by publicly traded companies, and those companies can issue stocks.

By buying shares, I become a mini-owner of that company and am supporting it.

If, at some point in your life,
you come across something that makes you think,
“I’ve been seeing this company a lot lately,”
or “This product is really great,”
please be sure to check whether that company is publicly traded.

And if the company is publicly traded,
you might find it fun to buy a few “shares” starting with a small amount
and become a small owner (shareholder) who supports that company.

Once you understand how the economy works,
the familiar sights of your neighborhood and
your everyday shopping
will start to look like a slightly different and interesting world.