why would a business want to go public?
DESCRIPTION
As a company grows in profitability and size, they may decide to go public. But what does this mean? A company that is public means that people can purchase a portion of the company. This is generally a smart option for SOME companies to earn more revenue and to expand their business.TRANSCRIPT
What is an IPO?
IPO Stands For:
Initial Public Offering
Definition
The Initial Public Offering is the first time a company’sshares are available to the public for buying and selling.
What’s NecessaryFor Going Public?
•Not every company can nor should go public
•Need a certain amount of earnings in previous years
•The SEC (Securities Exchange Commission) requires that companies have 3 years of audited financialstatements
The Benefits•Boost in revenue for growth and expansion
•Prestige and public recognition
•Can act as a great marketing event for PR
The Downside•Loss of complete control of your company
•SEC can force you to reveal privately information
•You must answer to a board of investors
The Plight of a Growing Business
Sharing businesswith the public
Continue this cycle to earn more revenue