podcastsinenglish Level B.86 The company
Apr 30, 2020
Dive into the intricacies of starting a company, focusing on public limited companies. Discover how shares represent ownership and how shareholders aim for profits and dividends. The discussion also tackles the concept of limited liability, ensuring owners only risk their initial investment. Intriguingly, even high-profile figures like Richard Branson aren't personally liable for their companies' debts, raising questions about accountability. A thought-provoking conversation that balances finance with real-world implications!
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What A PLC Means
- A PLC (public limited company) issues shares that trade publicly on the stock exchange.
- Share prices fluctuate as investors buy and sell portions of the company.
Share Ownership Is Proportional
- Companies can issue millions of shares and anyone with even a few shares is an owner.
- Shareholders mainly hope the value of their shares rises rather than managing the company directly.
Dividends Vs Reinvestment
- Shareholders may receive dividends as a portion of company profits, similar to interest.
- Companies often reinvest most profits back into the business instead of paying large dividends.