Benefits of listing a company:
1, you can get financial support;
2. The company sells a part of its shares to the public, which is equivalent to finding the public to share the business risks with itself. Once the unlisted company goes bankrupt, it needs 100% loss; However, listed companies only need to lose money according to the shareholding ratio, which disperses the operational risks.
3. Increased the liquidity of shareholders' assets.
4. There is another financing channel. Please control the bank instead of relying on bank loans all day.
5. Improve the transparency and exposure of the company, increase the public's confidence in the company, and improve the company's visibility;
6. Transferring some shares to other personnel can reduce the conflict of interest between managers and company holders.
Disadvantages of listing companies
1. Whether you go public by yourself or entrust a third-party investment company to help you go public, it costs money.
2. While improving the transparency of the company, it will inevitably expose many company secrets;
3. After listing, it is necessary to regularly inform shareholders of some company information such as financial statements and company income;
4. It is likely to be maliciously controlled by competitors;
5. When the company just went public, the original share price was usually set at a very low level, which is a common practice. Almost all companies set their share prices very low when they go public, but it is a loss for companies to sell shares at a low price.