🔒 Private Limited Companies (Ltd)
Big Idea: A private limited company sells shares privately to selected people. Shares cannot be bought on a public stock exchange.
Key features
- Owned by shareholders with limited liability
- Shares sold privately to family, friends or investors
- Separate legal identity from owners
- Shareholders’ personal assets are protected
- Legal continuity — company continues if owners change
📈 Public Limited Companies (PLC)
Big Idea: A public limited company sells shares on a stock exchange where anyone can buy them.
Key features
- Shares traded on a public stock exchange
- Anyone can buy shares
- Limited liability for shareholders
- Separate legal identity
- Must publish financial accounts
- Risk of hostile takeover