Which type of company has the ability to sell shares on the stock exchange?

A listed company is one that has met the requirements set by a stock exchange to sell its shares to the public. By being listed, the company gains access to wider capital markets, allowing it to raise funds from individual and institutional investors. These companies must comply with regulatory standards and disclose financial information to ensure transparency for shareholders and potential investors.

In contrast, a private limited company does not sell its shares on the stock exchange and typically has restrictions on the transfer of shares, making it less accessible for the general public. A non-profit organization is focused on furthering a social cause rather than generating profits for shareholders, so it does not engage in selling shares. Partnerships, which involve two or more individuals sharing profits and losses, also do not issue shares as they are not structured as corporations.