A public limited company ('PLC') is a business that can sell its stock to the general public. They are not required to make those shares available to the public, but they may do so.
The following are the primary benefits of being a public limited company:
Improved capital access, i.e. raising share capital from existing and new investors
Liquidity - The ability of shareholders to buy and sell their shares (if they are listed on a stock exchange).
The value of the company's shares is represented by the market capitalization (based on the share price)
The ability to make purchases more readily — for example, by giving shares to the target firm's shareholders
Giving a company a more distinguished image
As with any profession, there are some drawbacks to becoming a PLC (as opposed to remaining as a private company). The following are the major drawbacks:
Once a firm is listed on a stock exchange, it is likely that it will have a considerably higher number of external shareholders to whom corporate directors will be answerable.
Through the trading of the company's shares, financial markets will determine the company's worth and indicate the market's perception of the company's success over time.
Public scrutiny of the company's financial performance and actions will be increased.
How can we help?
Accotax Accountants in London will provide you with expert advice and practical assistance to support you as a director. We are also providing services for limited company accountants. Please call us on 0800 644 1258 email info@accotax.co.uk or call our senior consultant Sue directly on 0800 644 1258
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