From LTD to PLC

When firms grow they often change ownership from a LTD to a PLC

Public limited companies offer the benefit of raising more finance by selling shares to members of the public

By becoming a PLC a firm does not guarantee that they will be able to sell shares to the public

Flotation is the process where an LTD becomes a PLC

Advantages

Can raise more finance

More media attention

Disadvantages

Increased regulation e.g. have to publish accounts

No restrictions on share ownership

Share price open to fluctuations

Managers may loss control of the business