Public Limited Company (PLC)

What it is:

A public limited company is a company which offers equity shares with limited liability to public investors on a registered exchange.

How it works/Example:

More common in the U.K., public limited companies (PLC) offer shares of stock to any interested investor. Each share carries with it limited liability concerning the associated degree of possible loss. In most cases, losses are limited to the amount paid for the stock. In order to bear the PLC designation, a company must be legitimate and registered to trade on a stock exchange (e.g., FTSE or NYSE).

Why it Matters:

By offering equity shares to the public a PLC is able to effectively acquire capital for expansion and continuing operations. Offering limited liability to investors means that a PLC's legal or debt burdens cannot be transferred, or placed upon, shareholders.  

Best execution refers to the imperative that a broker, market maker, or other agent acting on behalf of an investor is obligated to execute the investor's order in a way that is most advantageous to the investor rather than the agent.