LTD turning into a PLC

• LTD company that Has potential for growth may opt for stock market flotation and transition into a PLC
• Stock market flotation is when a business publicly sells shares on the market
• Stock market floatation can lead to businesses raising a lot of capital by selling shares and can also have thousands of shareholders leading to financial risks being shared between a larger amount of people
• A lot of approval needs to be confirmed when making decisions and altering stuff
• Owners have less control over the share price in a LTD company which makes the business vulnerable due to the price depending on the National and global economy
• Supply and demand also affect share value as if a business doing well the demand will increase and so will the value of shares will increase
• Shareholders buy more than 50 percent of shares means that they become very powerful