Public Company Evolution: History and Impact
Public Company Evolution: A Historical Perspective
The evolution of public companies is a fascinating topic. Let’s explore the context in which the company emerges.
What is a Public Company?
A public company is a company that is owned by the public. It is a company that is listed on a stock exchange and is open to investment by the public. Public companies are often subject to more regulation than private companies. They are also subject to more scrutiny from investors and the public. Public companies are often used to provide essential services, such as health, education, and security.
Stages of Public Company Development
Throughout history, there have been variations in the growth of public companies. The stages are:
- The 13th Century: Stage of mercantilism. Proto-industry and state intervention and liberalization. Bourgeois public companies are created in Spain, called real factories, are very few.
- The Industrial Revolution: The public company loses much of its liberal character. There is a conflict between private power and state intervention.
- From 1900 to 1940: Growth stage and interventionism. Wars in Europe and Spain made the public company develop in a state of liberal thought.
- From 1940 to 1975: Industrial maturity and large protectionism. Nationalizations. Industrial growth provided an opportunity for the public company to grow.
- From 1975 to 1991: Stage of the Socialists to power and reconversion. Unprofitable businesses became private. Public and private enterprises have similar roles and importance.
Successes and Failures of the INI
The INI (National Institute of Industry) was created to match income goals, assist in crises, improve economic growth, and help employment. The INI gave many benefits and created highly profitable enterprises. However, its activity was not always successful, and some projects were unviable.
Privatizations
There are two types of privatizations:
- Complete Privatization: A public company is bought by a private entity.
- Partial Privatization: A portion of the company is sold to the private sector.