A public limited company (plc) is owned by shareholders who elect a Board of Directors to control the company. Plcs can raise large amounts of capital through stock sales to the public and have limited liability to attract investors, though complying with stock exchange requirements is costly and publicly available information could help competitors.

2. Features
 Name public limited company is shortened to
plc
 Owners are called shareholders and receive
dividends
 Ran/Controlled by a Board of Directors
elected by shareholders
 Shares are bought and sold through the stock
market

3. Advantages
• Large amounts of capital can be raised from
the sale of shares to the public
• Investors will have limited liability meaning
PLCs will find it easier to attract shareholders.
• Lenders are more likely to give money as they
have greater confidence it will be paid back.

4. Disadvantages
 Costly to produce all the documents required
by the stock exchange
 Anyone can buy shares and therefore it is
possible for an outside interest to take
control of the company
 All of the company accounts can be inspected
and competitors may be able to use this
information to their advantage