Public Limited Company
A public limited company (PLC) is the legal designation of a limited liability company which has offered shares to the general public and has limited liability.
The main advantages of a being public limited company are:
- Better access to capital – i.e. raising share capital from existing and new investors
- Liquidity – shareholders can buy and sell their shares (if they are quoted on a stock exchange
- Value of shares – the value of the firm is shown by the market capitalisation (based on the share price)
- The opportunity to more easily make acquisitions – e.g. by offering shares to the shareholders of the target firm
- To give a company a more prestigious profile