Share IssuesHeather Lemmon

And

Jambo Fitches

DEFINITION:

Share issues is when a company issues more of its shares, to make money.

Example: If Tesco’s had one million shares and they had already sold 50,000 of them they could sell more shares at a price of losing a small amount of control over their business, which would raise tesco’s funds.

Advantages :

You don’t have to repay the amount raised.

There will be no interest like in an overdraft.

You will make more money! $$$

Disadvantages :

You might lose control of your business by outsiders that have come together.

You might not be able to sell the shares.

You will lose some of the profit.

Public Limited Companies:

Public Limited Companies (PLC) will sell shares to members of the public. There is a possibility that they will lose control to their company to outsiders, if they come together. PLC’s often dominate the market, some people spend their life buying shares as their career. (Stockbroker)

Private Limited Companies:

Private Limited Companies (LTD) will only sell their shares to their family and friends. This is a good choice as they will no lose control of their business to outsiders, unless they are unwilling to co-operate. Although they will not raise as much funds as a PLC would.

Examples Of PLC’s:

Examples of Private Limited Companies: