Some people may ask that the company is short of money and can borrow money from the bank. Here we need to popularize the difference between bank loans and listed financing.
Not to mention the difficulty of bank loans. When the bank loan is due, they must repay the principal and interest. The company operates well and there is no problem in repayment. When the company encounters a decline in operating conditions, it may face the situation that it cannot repay the due loans, which makes the company bear heavy debts and is not conducive to the company's development.
If the company goes public for financing, there will be no problem of paying off debts. Shareholders who issue and buy shares in the market have become shareholders, and their investment is non-repayable. However, they can transfer their shares through stock market transactions, choose to withdraw, or continue to hold them, which also provides a convenient channel for capital withdrawal.
Now many start-ups want to go public and burn money quickly. First angel round investment, then A round, B round, C round, D round and so on. They suspect that their purpose is not pure, and they all want to go public and run away.
1. When a company goes public, there is light on the boss's face, and there is light on his face when he goes out to socialize.
2. It can improve the visibility of the enterprise and also enhance the brand exposure of the enterprise. Dealing with private enterprises and state-owned enterprises, listed companies are equivalent to a trustworthy business card.
3. Optimize the corporate governance structure. After listing, professional managers can be hired to manage the enterprise and optimize the governance structure.
The company's listing can achieve greater development, and the stock market has the function of financing, which can bring a lot of money. There is no interest on this batch of funds. The listing of companies also has an advertising effect. After the company goes public, its credibility will be greatly improved, and the public's cognition will also be improved. The founders and shareholders of listed companies can get more benefits, so they all want to go public.
In the concept of a listed company, it mainly means that the company can issue shares to the outside world and trade them on the stock exchange. Listed companies can be divided into joint stock limited companies. It is found that in addition to the approval of relevant departments, certain conditions need to be met. These companies have a very obvious feature that they can raise funds in the securities market and widely absorb idle funds in society. With the support of these funds, they can quickly improve the competitiveness and market share of their products.
After the company develops to a certain scale, listing is often the main goal. Judging from some international experience, many well-known large enterprises in the world are basically listed companies. For example, 95% of the top 500 companies in the United States have gone public.