Public limited companies (PLCs) (Edexcel GCSE Business): Flashcards
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Practise the cards
13 cards from this deck
Definition of PLC
Definition of PLC
Business selling shares to public via stock exchange
Process of becoming a PLC
Process of becoming a PLC
Stock market flotation
% ownership typically sold when going public
% ownership typically sold when going public
Around 30%
% ownership that may stay with original owners
% ownership that may stay with original owners
Around 70%
PLC vs private ltd: key difference
PLC vs private ltd: key difference
PLCs have unrestricted access to public capital markets
PLC shareholder liability
PLC shareholder liability
Limited - only risk investment, not personal assets
PLC fundraising benefit
PLC fundraising benefit
Can raise substantial capital from thousands of investors
PLC credibility benefit
PLC credibility benefit
Appear more established & trustworthy
PLC public awareness benefit
PLC public awareness benefit
Increased media coverage & brand recognition
PLC takeover risk
PLC takeover risk
Others can buy enough shares to take control
PLC regulatory drawback
PLC regulatory drawback
Complex accounting & reporting requirements
PLC financial privacy drawback
PLC financial privacy drawback
Must publish all financial data publicly
PLC shareholder influence drawback
PLC shareholder influence drawback
Shareholders can influence decisions via voting rights