growth to PLC and stock market flotation Flashcards
public limited company
a business entity those whose shares are publicly traded on a stock exchange, allowing for widespread ownership
adv of being a public limited company
raise more financial capital as not constrained to selling shares, become available for anyone to buy
provides funds for research expansion and growth
can offer stock options as an employee benefit
therefore, no interest to pay
improves gearing ratio/in less debt
prestige-will get lots of press coverage, be advertised
dis of being a public limited company
loss of control of the company
(divorce of ownership and control)
shareholders will have a say in major decisions
much more paperwork
much more complex legally
process of becoming a plc and floating, involves significant costs
may suffer from pressure from shareholders to deliver profits at the expense of ethics
stock market flotation definition
process through which a private limited company offers its shares to a public for the first time, transforming from a private limited company (Ltd) to a public limited company (PLC)
