What distinguishes funding sources for public limited companies?

The distinguishing feature of funding sources for public limited companies is that shares of these companies are freely bought and sold on the stock exchange. This public trading of shares provides a significant avenue for raising capital, as it allows a larger pool of investors to buy into the company. When a public limited company issues shares, it essentially offers ownership stakes to the public, enabling it to raise funds to finance operations, expansion, and other projects.

In contrast, the other options do not accurately represent the nature of funding for public limited companies. For instance, funding by donations typically pertains to charitable organizations, not companies operating for profit. Limiting funding to private investors does not apply to public limited companies, as their shares are available to any investor willing to buy them on the open market. Relying solely on loans overlooks the critical mechanism of equity funding that public companies utilize, which is key to their capital structure.