posted on 06-06-2019

Public Limited Company (PLC)

Updated October 1, 2019

What is a Public Limited Company (PLC)?

A public limited company is a company which offers equity shares with limited liability to public investors on a registered exchange.

How Does a Public Limited Company (PLC) Work?

More common in the U.K., public limited companies (PLC) offer shares of stock to any interested investor. Each share carries with it limited liability concerning the associated degree of possible loss. In most cases, losses are limited to the amount paid for the stock. In order to bear the PLC designation, a company must be legitimate and registered to trade on a stock exchange (e.g., FTSE or NYSE).

Why Does a Public Limited Company (PLC) Matter?

By offering equity shares to the public a PLC is able to effectively acquire capital for expansion and continuing operations. Offering limited liability to investors means that a PLC's legal or debt burdens cannot be transferred, or placed upon, shareholders.