What Are The Characteristics Of Public And Private Limited Company?

A private limited company is the one which is owned by a group of people. The capital in such a company is only contributed by the owners and shares cannot be issued to the general public. The shares of a private limited company are not traded on the stock exchange. These companies are usually smaller in size as compare to public limited companies. Moreover, the profits are only shared among the shareholders.

A public limited company is listed on the stock exchange and its shares are traded on the stock exchange. Public limited company can raise the funds from the public by issuing authorized shares. These companies have a minimum share capital and they must have minimum two directors. Such companies offer liquidity to the shareholders therefore, it can easily raise the capital. Moreover, the companies have to give accurate and reliable information to the investors.