Going Public

Going public is the process of an initial public offering(IPO.) An initial public offering is when a company offers part ownership of the business to the public through the sale of equity, also known as stock. 

A company may decide to go public for several reasons. Some include the need for capital, acquisitions, increased company status, or executive payment. Sometimes going public can also be a burden for a business. When the public has part ownership in your company, there is always extreme pressure to perform well in the short term. You also lose some personal benefits as a business owner as well as management control.

There are also many requirements for a company to go public including a certain amount of annual revenue and profit along with an experienced management team. A good outside consisting of consultants, attorneys, and underwriters also helps when going public.


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