Public Limited Company (Plc.) Flashcards
What is a Public Limited Company?
Public limited companies can sell their shares on the Stock Market.
Anyone can buy shares in them.
They are usually larger than private limited companies.
What are the advantages of a Plc.
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.
Expanding the company should lead to higher profits.
What are the disadvantages of a Plc.
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 from the company website
