Why would a company consider going public? What are some of the advantages and disadvantages? please use your own words no copy and paste, and no handwriting. thank you so much!
A company will consider going public when it wants to expand and grow. Generally finance requirements are the main trigger for going public.
The major advantage of going public is that the company is now able collect huge amounts of funds from multiple investors. The company gets listed in recognized stock exchanges. This increases its credibility and allows it easy access to borrowed funds as well. Shares of the company are easily transferable and valuation of the company becomes easier.
However there are also disadvantages involved. This is a costly and time consuming process. There are numerous and stringent legal formalities involved. The company has to maintain transparency and publish its financial statements on a regular basis. The original owners may lose control over the company. Due to the sudden increase in size it may become difficult to manage the company.
Why would a company consider going public? What are some of the advantages and disadvantages? please...