Which statement describes a public limited company (PLC)?

• A. A company whose shares can be bought and sold by the public
• B. A private company with restricted shares
• C. A company that must publish accounts monthly
• D. A company whose shares cannot be traded publicly

Answer: (A)

Public limited companies are defined by the fact that their shares can be bought and sold by the public. This openness allows anyone from the general population to invest in the company, typically through a stock market, which also provides liquidity for shareholders. That public trading of shares is the key feature that sets a PLC apart from private companies, where ownership is restricted to a small group and shares aren’t publicly traded. The other statements don’t fit because a private company with restricted shares describes a non-publicly traded entity, monthly reporting frequency isn’t what defines a PLC, and shares that cannot be traded publicly would describe a private or non-listed company.