What is a public limited company?
In GCSE Business, a public limited company (PLC) is a business that sells shares to the public on the stock exchange. Unlike private limited companies, PLCs can raise large amounts of money by selling shares to anyone who wants to invest.
PLCs have "PLC" or "plc" after their name and need at least £50,000 in share capital to start. They must publish their financial accounts each year. Their shareholders have limited liability, meaning they can only lose what they invest should the business fail. PLCs require at least two directors to run the company.
Companies often become PLCs to grow by raising more finance from investors. For example, when Marks & Spencer became a PLC, it could open more shops across Britain because lots of people bought its shares. However, PLCs face stricter rules and must publish company information to the public.
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