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Public Limited Company
Joint stock companies are also known as limited companies. A limited company sells shares to investors in order to raise money for the business. Shareholders are the owners of the but because in many cases there are so many of them, they often appoint managers to run the business on their behalf. A public limited company must have a minimum of 2 shareholders.
How Does A Public Limited Company Operate?
- The more shares the person holds, the more of the company they will own and the bigger will be the share of any profits.
- Shares are normally issue for sale to the general public on the stock market. The stock market is made up of all buyers and sellers of shares. Share prices and the quantity of shares traded are determined by demand and supply like in any other free market.
- Before CA limited company can offer it's shares for sale through a stock exchange the governing body of the exchange will investigate the company to ensure that it is a trustworthy and we'll run and meet agreed standards of practice and size.