What type of companies are owned and funded by public equity shareholders?

The correct choice, stock companies, refers to insurance companies that are owned by shareholders. These shareholders invest in the company by purchasing stock, which provides them with equity ownership. In stock companies, the goal is to generate profits, and shareholders typically receive dividends as a return on their investment. The ability to raise capital through public equity allows stock companies to expand their operations and offer a broader range of insurance products.

In contrast, mutual companies are owned by policyholders, and profits are typically retained within the company to provide benefits to those policyholders rather than being distributed as dividends. Lloyd's associations operate on a different structure altogether, involving members who join to underwrite insurance risks, and typically do not operate as publicly traded entities. Self-insured funds are not structured as companies in the same way; instead, they represent a method by which an entity sets aside funds to cover its own potential liabilities without transferring risk to an insurer. Thus, stock companies stand out for their ownership structure based on public equity investment.