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
