Public Limited Companies can sell shares to anybody
- When a private limited company has met certain minimum requirement (e.g. the number of shareholders and its record of profitability) it can choose to convert itself to a public limited company
- Private limited companies can only sell new shares if all of the current shareholders agree.
- A public limited company is formed when a private limited company is 'floated' on the stock market, allowing any member of the public to buy shares in the company.
- This means there is much more money available to the company in the form of share capital, which allows the firm to expand greatly.
- Many of the world's largest companies are public limited companies - British ones…
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