What Is The Relationship Between Joint-Stock Companies And Stock Exchanges Publicly Listing A Company – The Advantages And Disadvantages

You are searching about What Is The Relationship Between Joint-Stock Companies And Stock Exchanges, today we will share with you article about What Is The Relationship Between Joint-Stock Companies And Stock Exchanges was compiled and edited by our team from many sources on the internet. Hope this article on the topic What Is The Relationship Between Joint-Stock Companies And Stock Exchanges is useful to you.

Publicly Listing A Company – The Advantages And Disadvantages

The reasons a company decides to go public on a stock exchange often include the ability to access capital markets to finance expansion and acquisitions. Typically, they have invested many years in returning profits and guaranteeing loans, and rather than selling out, they want to stay with the company and participate in its future growth.

Even if your business is suitable for swimming, it may not be the right choice for you. A number of main advantages and disadvantages should be weighed:-

Advantages:

o You gain access to new capital for business development

o The float makes it easier for you and other investors to realize their investments

o You can offer additional incentives to employees by granting stock options

o A public company can provide additional assurance to customers and suppliers

o Your company may gain a higher public profile, which can be good for business

o Having your own traded stock gives you more potential to acquire other businesses because you can offer stock as well as cash

o Directors’ personal guarantees are generally not required for borrowings

Disadvantages:

o Your business may become vulnerable to market fluctuations that are beyond your control.

o If market conditions change during the placement process, the placement may have to be abandoned.

o Accommodation costs can be significant and there are ongoing costs such as higher professional fees.

o You will have to consider the interests of the shareholders when running the company – which may differ from your own objectives.

o You may have to relinquish some managerial control over the business and there is a risk that the company may eventually be taken over.

o Public companies must comply with a wide range of additional regulatory requirements and meet accepted standards of corporate governance

o Managers may be distracted from running the business by the demands of the placement process and after dealing with investors

It usually takes 6 months for a company to go public on a stock exchange, although this period can be anywhere from 3 months to 2 years. You will need a range of professional advisors to assist you with the legal, financial, accounting and valuation aspects of a public listing, as well as the preparation of a prospectus, share underwriting and assistance with IPO plans.

Video about What Is The Relationship Between Joint-Stock Companies And Stock Exchanges

You can see more content about What Is The Relationship Between Joint-Stock Companies And Stock Exchanges on our youtube channel: Click Here

Question about What Is The Relationship Between Joint-Stock Companies And Stock Exchanges

If you have any questions about What Is The Relationship Between Joint-Stock Companies And Stock Exchanges, please let us know, all your questions or suggestions will help us improve in the following articles!

The article What Is The Relationship Between Joint-Stock Companies And Stock Exchanges was compiled by me and my team from many sources. If you find the article What Is The Relationship Between Joint-Stock Companies And Stock Exchanges helpful to you, please support the team Like or Share!

Rate Articles What Is The Relationship Between Joint-Stock Companies And Stock Exchanges

Rate: 4-5 stars
Ratings: 1221
Views: 99793401

Search keywords What Is The Relationship Between Joint-Stock Companies And Stock Exchanges

What Is The Relationship Between Joint-Stock Companies And Stock Exchanges
way What Is The Relationship Between Joint-Stock Companies And Stock Exchanges
tutorial What Is The Relationship Between Joint-Stock Companies And Stock Exchanges
What Is The Relationship Between Joint-Stock Companies And Stock Exchanges free
#Publicly #Listing #Company #Advantages #Disadvantages

Source: https://ezinearticles.com/?Publicly-Listing-A-Company—The-Advantages-And-Disadvantages&id=835976

Related Posts

default-image-feature

What Is The Process Of Contributing Stock To An S-Corp Data Mining and Financial Data Analysis

You are searching about What Is The Process Of Contributing Stock To An S-Corp, today we will share with you article about What Is The Process Of…

default-image-feature

What Is The Price Of Amazon Stock Today Jan.9 2019 OTT Webseries Blues In India: Tandav Just A Beginning Of The Tandava?

You are searching about What Is The Price Of Amazon Stock Today Jan.9 2019, today we will share with you article about What Is The Price Of…

default-image-feature

What Is The Main Difference Between Make-To-Order And Make-To-Stock Sytems 5 Easy Steps to Make Money Online Through Amazon Drop Shipping

You are searching about What Is The Main Difference Between Make-To-Order And Make-To-Stock Sytems, today we will share with you article about What Is The Main Difference…

default-image-feature

What Is The Economic Trade-Off Involved In Buying Preferred Stock How Does Gold Fare in Difficult Economic Times?

You are searching about What Is The Economic Trade-Off Involved In Buying Preferred Stock, today we will share with you article about What Is The Economic Trade-Off…

default-image-feature

What Is The Cost Of Carry For A Non-Dividend-Paying Stock Ultimate Internet Marketing Image – A Synergy of Traditional Offline & Online Marketing Strategies

You are searching about What Is The Cost Of Carry For A Non-Dividend-Paying Stock, today we will share with you article about What Is The Cost Of…

default-image-feature

What Is The Cost Basis On Sale Of S-Corp Stock Gold Bullion is the Wisest Choice to Utilize Your 401k (USA)

You are searching about What Is The Cost Basis On Sale Of S-Corp Stock, today we will share with you article about What Is The Cost Basis…