What is one characteristic of a public limited company?

A public limited company is required to publish annual accounts, which is a fundamental characteristic of such organizations. This requirement stems from the need for transparency and accountability to shareholders and the public. Because public limited companies trade their shares on stock exchanges, they attract investments from the general public, including individual and institutional investors. To maintain trust and ensure informed investment decisions, regulatory bodies mandate these companies to disclose detailed financial information, which includes annual accounts.

This transparency allows shareholders and potential investors to assess the company's performance and financial health, aiding in informed decision-making. The obligation to publish annual accounts helps facilitate market stability and investor confidence, which are crucial in the public financial markets where these companies operate.