A PLC, or public limited company, trades shares publicly on the stock exchange while an LTD, or limited company, trades shares privately. Both have set rules for the buying and selling of shares.Know More
Limited companies are incorporated, affording them legal identities as well as the rights to own their own assets and sue. Ownership is controlled by dividing up shares. Shareholders are attracted to limited companies because they have limited liability, meaning the shareholders are not held responsible for the debts if the company fails. Shareholders are not necessarily involved with the company unless they are appointed to the board of directors.
A private limited company does not trade its shares on the stock exchange, and shareholders are obliged to offer their shares to other shareholders before third parties. The restrictions on ownership are designed to regulate and prevent hostile takeovers. The number of shareholders is set, with the average being 50 shareholders.
A public limited company trades on the stock exchange, meaning anyone is able to buy shares. Public companies have to be transparent with their finances so investors can accurately determine the value of the shares. Public limited companies are also known as publicly held companies.Learn more about Corporations
Unlike shares, debentures do not confer ownership or voting rights to buyers. This is because debentures are issued solely to borrow money from debt markets and not to increase the number of shareholders. However, some debentures can be converted into shares.Full Answer >
In the strictest sense, privatization is the industrial assumption of functions or institutions that were formerly part of or administered by the government, whereas commercialization is the introduction of a commodity into the free market for mass consumption. An example of privatization is the growing trend of for-profit colleges. In contrast, the introduction of a new food item at a fast food restaurant is an example of commercialization.Full Answer >
Primary differences between a limited liability company, or LLC, and an S-Corporation center on more restrictive ownership and earnings distribution requirements, and more formal structural requirements for S-Corporations. While an LLC can have unlimited owners, and S-Corporation is limited to 100 shareholders, according to Inc. magazine.Full Answer >
In a merger, one corporation, known as the survivor, takes over another corporation, known as the merged. A consolidation is the joining of two corporations to form a new, third corporation.Full Answer >