Which term describes a company that can raise capital by selling shares on a public stock exchange?

Which term describes a company that can raise capital by selling shares on a public stock exchange?

• A. Ltd
• B. Social Enterprise
• C. Co-Operatives
• D. Plc

Answer: (D)

Raising capital by selling shares on a public stock exchange belongs to a Public Limited Company. This structure lets the business offer its shares to the general public and have them traded on a stock market, which opens up large-scale funding from many investors. Private limited companies can’t sell shares to the public and typically raise funds from private investors or loans. Social enterprises and co-operatives have different aims and funding routes and aren’t defined by public stock market listings. So the term that fits is Public Limited Company.

Raising capital by selling shares on a public stock exchange belongs to a Public Limited Company. This structure lets the business offer its shares to the general public and have them traded on a stock market, which opens up large-scale funding from many investors. Private limited companies can’t sell shares to the public and typically raise funds from private investors or loans. Social enterprises and co-operatives have different aims and funding routes and aren’t defined by public stock market listings. So the term that fits is Public Limited Company.