Public Limited Company - PLC

DEFINITION of 'Public Limited Company - PLC'

The standard legal designation of a company which has offered shares to the general public and has limited liability. A Public Limited Company's stock can be acquired by anyone and holders are only limited to potentially lose the amount paid for the shares. It is a legal form more commonly used in the U.K. Two or more people are required to form such a company, assuming it has a lawful purpose.

BREAKING DOWN 'Public Limited Company - PLC'

A limited company grants limited liability to its owners and management. Being a public company allows a firm to sell shares to investors this is benificial in raising capital. Only Public Limited Companies may be listed on the London Stock Exchange and will have the suffix PLC on their ticker symbol. For example, British Petroleum has the ticker BP PLC.
Other requirements include: It must be registered as a public company, it must have at least £50.000 or ¬65,000 of authorized share capital.

RELATED TERMS
  1. Articles Of Organization

    A formal legal document used to establish a limited liability ...
  2. Undertakings For The Collective ...

    A public limited company that coordinates the distribution and ...
  3. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  4. Public Company

    A company that has issued securities through an initial public ...
  5. Limited Liability Company - LLC

    A corporate structure whereby the members of the company cannot ...
  6. Corporation

    A legal entity that is separate and distinct from its owners. ...
Related Articles
  1. Stock Analysis

    The Top 10 Healthcare Stocks for 2016 (ABT, AGN)

    Learn about the top 10 health care stocks expected to grow in 2016, with brief insights into each company's growth potential and expected target price.
  2. Investing Basics

    Stock Basics Tutorial

    If you're new to the stock market and want the basics, this is the tutorial for you!
  3. Options & Futures

    Getting To Know The Stock Exchanges

    Here are the answers to all the questions you have about stock exchanges but are too afraid to ask!
  4. Trading Systems & Software

    The Global Electronic Stock Market

    The way trading is conducted is changing rapidly as exchanges turn toward automation.
  5. Retirement

    IPO Basics Tutorial

    What's an IPO, and how did everybody get so rich off them during the dotcom boom? We give you the scoop.
  6. Entrepreneurship

    LLC Vs. Incorporation (Inc.): Which Should I Choose?

    Learn about the advantages of forming an LLC over a corporation, including ease of administration. Read about the advantages that a corporation may offer.
  7. Stock Analysis

    7 Trump Businesses You Didn't Know Existed

    Understand what Donald Trump is best known for and the types of income streams he's created. Learn about seven obscure businesses he owns.
  8. Mutual Funds & ETFs

    The Top 5 ETFs to Track the FTSE X0 for 2016 (UK)

    Read about some of the best ETFs offering exposure to mid- and large-cap companies in the United Kingdom, and decide whether they match your investment needs.
  9. Investing Basics

    Real Estate Trust or LLC? Helping Landlords Choose

    Once you’ve bought property, are you protected legally against the liabilities that come with renting it out? Here's how to make sure you're covered.
  10. Taxes

    Why Delaware is the Most Business-Friendly State

    Incorporating your company in Delaware may give you the logistical, structural and judicial leg up you need to help your firm's chances of success.
RELATED FAQS
  1. What are the requirements for being a Public Limited Company?

    The requirements for an entity to be considered a public limited company (PLC) include registration requirements, establishing ... Read Full Answer >>
  2. What are the different kinds of shares that a Public Limited Company (PLC) can issue?

    A public limited company is a legal corporation structure in the United Kingdom that is essentially similar to a publicly ... Read Full Answer >>
  3. Can LLCs have employees?

    A limited liability corporation (LLC) can have an unlimited number of employees. An employee is defined as any individual ... Read Full Answer >>
  4. What is a family Limited Liability Company (LLC)?

    A family limited liability company (LLC) is formed by family members to conduct business in a state that permits such form ... Read Full Answer >>
  5. What are the liabilities of a silent partner?

    Because of the nature of their interest in a business, silent partners have limited liability that extends only up to the ... Read Full Answer >>
  6. What are the advantages and disadvantages of listing on the Nasdaq versus other stock ...

    The primary advantages for a company of listing on the Nasdaq exchange are lower listing fees and lower minimum requirements ... Read Full Answer >>
Hot Definitions
  1. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  2. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  3. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  4. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  5. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  6. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
Trading Center