A distinction about the publicly traded firm's shares is that they raise capital with the daily rise and fall of their share prices.

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Publicly traded firms sell shares to investors in order to raise capital. As the value of the shares fluctuates on the stock market, the company can continue to raise capital through the purchase of additional shares, or the sale of existing shares. This is a key advantage of public ownership, as it allows companies to raise funds more easily and quickly than with other forms of financing.

A Distinction About the Publicly Traded Firm's Shares Is That