Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

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.  

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