Why would a Company become a Public Limited Company?

2 months ago


2 Replies




Hosea Dietrich

Give an explanation as to why a company would want to become a public company, trading shares on the stock exchange. What would be some advantages to this.

2 Replies

Faraz H Profile Picture

Verified Sherpa Tutor

There are many reasons why a company would become a public limited company (PLC). Some of them include but not limited to:

  • the ability to raise additional finance (usually through the stock market)
  • achieving economies of scale by lowering operating costs
  • greater publicity attracting customers
  • the ability to make the company look more prestigious
  • the opportunity to make acquisitions by offering shares to the shareholders of the target company
to infinity and beyond!

Interested in booking a 1-1 lesson with me?

Click here to view my profile and send me a message.
Khyra Shah

A lot of companies would become Public to enable quicker expansion. One advantage of this would mean an increase in income and thus more profits.

Back To Business Studies Back To Business Studies GCSE Back To Topic
Alert Icon

Need help with Business Studies?

We have thousands of qualified teachers who are able to provide top quality lessons online. Find your tutor and set up your free introduction today!

Find a Business Studies Tutor