What are the nine major benefits of a company going public?
The nine major benefits of a company going public The benefits are detailed as follows:
1. The company can raise a large amount of funds through initial issuance and listing, and there are also opportunities for refinancing after listing, thereby further developing and growing the company. Funding sources are provided.
2. It can promote enterprises to establish standardized operation and management mechanisms, improve corporate governance structures, and continuously improve operational quality.
3. Stock listings must meet stricter listing standards and pass the review of regulatory agencies. The company's ability to go public is a strong proof of the company's management level, development prospects, and profitability.
4. Stock trading information is continuously released to the society through various media such as newspapers and TV stations, which expands the company's visibility and improves the company's market position and influence. It helps the company establish its product brand image and expand market sales.
5. Can be used Stock options and other methods can effectively motivate employees and management, help companies attract outstanding talents, stimulate employees' enthusiasm for work, and thereby enhance the company's development potential and stamina.
6. The listing and circulation of stocks expands the shareholder base, allowing stocks to have a higher trading volume, and free trading of stocks. Make it easier for shareholders to cash out their investment capital under certain conditions.
7. A company's listing status will help improve its credit status, enhance the confidence of financial institutions in the company, and make the company more attractive to banks. Credit and other business aspects are facilitated.
8. The changes in stock prices after listing form a market evaluation mechanism for the company's performance.
9. Issuance and listing of enterprises and becoming public companies will help companies better assume more social responsibilities.
"Company Law" Article 120 The term "listed company" as mentioned in this Law refers to the stock listed and traded on the stock exchange. Co., Ltd.
"Company Law" Article 121 A listed company purchases or sells major assets within one year or the amount of guarantee exceeds the company's assets If the total amount is 30%, a resolution shall be made by the shareholders' meeting and passed by more than two-thirds of the voting rights held by shareholders attending the meeting.
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