A publicly traded company is open to investment by anyone.
In 2010, Hong Kong's Agricultural Bank of China (ABC Bank) broke the record for the best-selling initial public offering -- raising $19.2 billion its first week, according to Renaissance Capital. Becoming publicly traded could push your company into its next stage of development.
Identification
When a company goes public, it sells shares in the company on the open market, usually through a stock exchange, to raise capital, according to FindLaw.
Effects
With public shares comes increased regulation, such as internal audits, by the Securities and Exchange Commission, according to Farlex. Also, the shareholders have voting power on company decisions and the company must hold a yearly shareholder meeting.
Benefits
Beyond raising capital, a publicly traded company gains prestige because "going public" indicates a successful company, according to FindLaw. It may also raise its profile and image among customers and gain exposure from financial analysts who write about the company.
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