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The benefits are an increase in shareholder value. A stock on an exchange is more liquid and valuable than one that is traded over the counter.

The costs are the reporting and accounting requirements of publuically traded companies. Well run companies will do these anyway, so there may be a slight cost in meeting the letter of the law, but the framework should be in place.

A disadvantage of being public is that the company is guided by the markets and the shareholders, rather than a small group of owners. This makes it harder to make decisions that will pay-off in the long run, but have negative effects in the short run.

2006-12-27 02:24:35 · answer #1 · answered by VATreasures 6 · 0 0

To get a listing costs a lot of money. business offering, lawyers, accountants, registration etc. megamoney.
Benefits, millions of investors, but it comes with responsiblities to shareholders and becoming a public company rather than private. Basically your firm becomes transparent.

2006-12-27 10:26:57 · answer #2 · answered by Latin Techie 7 · 0 0

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