PLC

abbreviation
Updated on: 13 Oct 2017

Definition of PLC

British
public limited company

Financial Definition of PLC

PLC

What It Is

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

How It Works

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 It Matters

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.


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