Nowadays, the attractive word "listing" has become synonymous with wealth, subverting the business philosophy of enterprises and becoming the ideal of many entrepreneurs.
What does listing mean?
The listing of a company refers to a joint stock limited company whose publicly issued shares are listed and traded on the stock exchange with the approval of the securities management department. The so-called unlisted company refers to a company whose shares are not listed and traded on the stock exchange.
What are the benefits of listing?
1. Corporate financing can solve the debt problem, expand production capacity and continue to develop, and increase employees' wages and benefits.
2. After listing, major shareholders, original shareholders and early investors can cash out after the shares are lifted. If they don't go public, the company will take part of their profits as dividends at most, which is insignificant compared with their shares. So a company went public and a group of people became rich. This is what they dream of.
3. After listing, you can also raise funds in the stock market, such as: fixed increase, rights issue and bond issue. If you don't go public, you can only borrow from the bank, but you may not be able to get it. If you borrow it, you have to pay interest and principal.
Is listing a company good or bad for investors?
There are three situations:
1. After listing and financing, the company continued to expand, develop better and better, and the company made more and more profits. Then his company's share price will rise higher and higher, and most of what everyone buys will make money, which is good for investors.
2. If the company's development is getting worse and worse, some major shareholders of listed companies just want to cash out and leave, and the stock price will be lower and lower. Most people who buy shares in such companies lose money, which is not good for investors.
3, financial fraud, fraud is possible before listing, fraud is also possible in the next few years. This kind of company has caused the biggest loss to shareholders. Because everyone looks at the company superficially and deceives everyone to buy their shares, once fraud is found, the company's share price will definitely plummet continuously.
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