Public Limited Company Flashcards
1
Q
Public limited companies
Advantages
Disadvantages
A
Public companies can sell their shares on the stock market
Anyone can buy shares in them
They are usually larger than private limited companies
Advantages - Large amounts of capital can be raised by selling shares through the stock market
The capital can be used to pay for expanding the company
Expanded the company should lead to a higher profits
Disadvantages - The profits have to be shared between large numbers of shareholders
The original owners will probably lose control, because they will now own less than 50% of the shares in the company
Changing from ltd to plc is a very expensive process
Anyone can find out the financial position of the company form the company website
