Public Limited Company - PLC

A A A

DEFINITION

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.

INVESTOPEDIA EXPLAINS

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 (LLC) company ...
  2. Limited Liability Company - LLC

    A corporate structure whereby the members of the company cannot be held personally ...
  3. Undertakings For The Collective ...

    A public limited company that coordinates the distribution and management of ...
  4. Public Company

    A company that has issued securities through an initial public offering (IPO) ...
  5. Limited Liability

    A type of liability that does not exceed the amount invested in a partnership ...
  6. Exchange

    A marketplace in which securities, commodities, derivatives and other financial ...
  7. Corporation

    A legal entity that is separate and distinct from its owners. Corporations enjoy ...
  8. Silent Partner

    An individual whose involvement in a partnership is limited to providing capital ...
  9. Authorized Share Capital

    The number of stock units that a publicly traded company can issue as stated ...
  10. Italian Derivatives Market

    A derivatives exchange headquartered in Milan, Italy. The Italian Derivatives ...
Related Articles
  1. Getting To Know The Stock Exchanges
    Options & Futures

    Getting To Know The Stock Exchanges

  2. The Global Electronic Stock Market
    Trading Systems & Software

    The Global Electronic Stock Market

  3. IPO Basics Tutorial
    Retirement

    IPO Basics Tutorial

  4. Stock Basics Tutorial
    Investing Basics

    Stock Basics Tutorial

  5. How The Sarbanes-Oxley Era Affected ...
    Fundamental Analysis

    How The Sarbanes-Oxley Era Affected ...

  6. Sugar: A Sweet Deal For Investors
    Sectors

    Sugar: A Sweet Deal For Investors

  7. What is the difference between arbitrage ...
    Investing

    What is the difference between arbitrage ...

  8. Should You Incorporate Your Business?
    Entrepreneurship

    Should You Incorporate Your Business?

  9. If you have a house that is under your ...
    Taxes

    If you have a house that is under your ...

  10. An Introduction To Sector ETFs
    Mutual Funds & ETFs

    An Introduction To Sector ETFs

comments powered by Disqus
Hot Definitions
  1. Quanto Swap

    A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on the movement of two different countries' interest rates. This is also referred to as a differential or "diff" swap.
  2. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  3. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  4. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  5. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
  6. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.
Trading Center