why do companies want to seek a listing in the stock market?

Answer 1

They sell little chunks of their company to raise working capital, one reason may be for future expansion or to raise funds for a take over. Punters buy shares because they believe that at sometime in the future they will be worth more.
There are also punters that reverse buy shares that they believe will be worth less in the future, these are called Shorters. Its one way to become very rich but most people in fact lose money.

Another reason companies will "float" on the stock market is just before they go down the pan, unscrupulous directors make a killing on greedy gullible punters buy selling shares that will be worthless in the future.

Its a jungle out there.

Answer 2

Let's see, I realized my dream and have this big manufacturing operation for personal computers, and were I Michael Dell (and I'm not), then I do an IPO (initial public offering) and because I'm a going concern and have for several years, my brokerage or investment banker gets me listed on one of the major exchanges. Now I can sell part and do things I really want, like hire someone else to run the show while I go fishing.

Then there is Mark Cuban, who builds a business, pays people, in part, in the company stock, then sell the company for a really, really big profit just before the dot.com bust. I now take my cash and buy a basketball team and have a blast.

Clement Stone, who started an mickey mouse insurance company, that made him really rich, used to say he did it with OPM (of course when you say that out loud on a late night talk show, it gets a really fun reaction from the hosts)--Other People's Money.

Some private companies go public because it gives them prestige, as a public reason, to impress customers. The heads (and major stockholders) do it to have a place to sell their stock for extra cash to supplement their earnings. After all, if the company gives you options to buy the stock as part of your compensation for heading the company, what good is that unless you can cash in that stock from time to time to buy what you want? Stock options are then like getting a gift card that no store will honor, unless that stock is publicly traded. Exercised your options for that 10,000 shares? Multiply 10,000 by the last price traded on the exchange and you know how much those holdings are supposedly worth.

Martha Stewart knew she was rich, but it took an IPO and an interested bunch of people in the stock markets to make her, in one day, a billionaire. That was why she had Martha Stewart Omnimedia listed on the NYSE.

Answer 3

My guess it's a pre request for a sucessful IPO. The big money is not going to go to a company whose stock will not be listed because not only will the stock price be less, there won't be the volume to sell or buy large quanities of stock at a time.

Answer 4

When companies float on the stock market, they sell part of their company, divided up into little bits called shares. People buy these shares and the company gets the money. Everyone who has a share is entitled to share the profits.
It is a good way for companies to raise money for expansion etc, in return for losing part of the ownership of their company.

The value of the shares can change according to the percieved value of the company.

(very simplified explanation)

Answer 5

To acquire additional working capital by selling shares of its own to the public. In short, to raise money without borrowing.

Answer 6

to boost intrest by investers and attract more shareholders.