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Section: 6 Advantages of going Public
There are a number of advantages for companies to go public and get listed on the market:
Listed companies can raise relatively large sums of funds either through equity or debt issue.
Listing provides a ready market place for the shareholders to dispose their shares or acquire more shares as they wish.
Public companies tend to have higher profile than private companies.
Provides a ready value for the shares of the company compared to a privately held company.
Provides an opportunity for employees to also become shareholders.
Merger and acquisitions are made easier when the company is listed.
Issuing new capital is relatively easier for a listed corporation.
Higher bargaining power with financiers compared to a private company.
A public offering generally nets a higher price for securities than do private placements or other forms of equity financing.
Going public can serve as the most attractive exit strategy.