Publicly Traded Companies

Going public and selling stock in your company is one of the greatest methods to raise cash for your business. This not only creates a method for generating huge sums of cash, but it also helps to minimize risk by distributing it among several owners. When a firm goes public, it may raise a lot of money rapidly, plus it gives you greater public exposure and diversifies your equity portfolio.

However, issuing publicly traded stock is not for everyone. It comes with higher administrative and managerial costs, more regulatory scrutiny, and a loss of centralized control as a result of ownership dilution. Furthermore, certain formerly private information is now available to the general public. 

Navigating the complicated maze of securities and operating in compliance with the Securities Act of 1933 under the supervision of the United States Securities and Exchange Commission is one of the most intimidating challenges for firms considering going public.

Although we generally associate publicly listed companies with industrial behemoths (Facebook raised over $16 billion and General Motors raised over $18 billion in the previous decade), you don’t have to be a multibillion-dollar corporation to issue stock.