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Public limited company (plc) |
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Public limited company (plc)A company registered as a public company which has an unlimited number of shareholders, and can offer its shares to the public.Most UK companies are incorporated as limited companies. Some of them grow to the point where they want to expand their shareholder base, and raise capital by listing on the London Stock Exchange. To do that, they need to convert their status to that of a plc.Similar MatchesListed companyListed companyA company that has satisfied the requirements for its shares to be listed on a Recognised Investment Exchange (RIE). In the case of the London Stock Exchange, a company which has obtained permission for its shares to be admitted to the Daily Official List. Captive finance companyCaptive finance companyA company, usually a subsidiary that is wholly owned, whose main function is financing consumer purchases from the parent company. Mutual companyMutual companyA corporation that is owned by a group of members and that distributes income in proportion to the amount of business that members do with the company. Open ended investment companyOpen ended investment company'OEICs' are hybrid investment funds that have some of the features of an investment trust and some of a unit trust.Like investment trusts, OEICs are companies that issue shares on the London Stock Exchange, and which use the money raised from shareholders to invest in other companies. Unlike investment trusts, they are open-ended which means that when demand for the shares rises the manager just issues more shares. With an investment trust, if demand exceeds supply, the response may be a rise in the share price.The price of OEIC shares is determined rather differently. More like a unit trust, in fact, with the key factor being the value of the underlying assets of the fund. But in contrast to unit trusts, there is no bid/offer spread with OEICs, so the price of the shares should be the same whether you are buying or selling.OEICs are popular on the continent but were only launched in the UK in 1997. There are around 300 up and running, with a wide range of investment objectives. You can put an OEIC into an ISA. Emerging Company Marketplace (ECM)Emerging Company Marketplace (ECM)A service once offered by the American Stock Exchange to help small growth companies fulfill special listing requirements. The service is no longer available. Further SuggestionsExport Trading Company (ETC)Title company Diversified investment company Registered investment company Regulated investment company Export management company close company Parent company Intercompany transaction Leveraged investment company Investment Company Act of 1940 company doctor Foreign base company income Company doctor Closed end management company Company specific risk Blue chip company Limited company Consumer finance company Cost company arrangement shell company Stock insurance company Intercompany loan Bank holding company Investment Company Institute (ICI) |
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