The difference between listed companies and unlisted companies
1. A listed company refers to a joint stock limited company that publicly issues shares and is approved by the securities administration department authorized by the state to be listed and traded on the stock exchange, while an unlisted company refers to a joint stock limited company whose shares are not listed and traded on the stock exchange.
2. Listed companies can trade in the secondary market, that is, financing is relatively simple and there are many financing channels; Unlisted companies cannot trade in the secondary market, and there are few financing channels.
3. The relevant decisions of listed companies need the approval of the shareholders' meeting, while the shares of non-listed companies are mainly concentrated in the hands of some senior executives, and the company's decisions may all be decided by legal persons.
4. The brand awareness of listed companies is higher than that of non-listed companies, which will lead to similar products, and users will choose the products of listed companies.
5. Listed companies have stricter requirements for financial disclosure than unlisted joint-stock companies.
6. The accountability system of listed companies and unlisted companies is different.
7. A listed company has been in business for more than 3 years, and its total share capital has reached more than 50 million yuan. Non-listed companies do not need to meet these conditions.
8. Listed companies can get the right to integrate social resources (such as public offering), but non-listed companies do not have this right.
Benefits of listing a company:
1, a new direct financing channel
In addition to raising a considerable amount of funds at the time of listing, enterprises can also refinance and raise funds after listing, and use their shares for mergers and acquisitions. Public listing is the most attractive long-term financing form for enterprises, which can fundamentally solve the capital needs of enterprises.
2. Improve the brand value and market influence of the company.
Public offering and listing has a strong brand communication effect. Public listing plays a great role in brand building of enterprises, which will directly improve the company's industry reputation and attract more attention. Because the operation of listed companies is quite transparent and standardized, it is more reassuring than that of non-listed companies, and customers, suppliers and banks will have more confidence in listed companies.
3. Listing makes the company more attractive to employees.
Listing on the exchange will make enterprises more attractive to high-quality employees (such as CEO) and help enterprises recruit satisfied senior talents. In addition, after listing, the company's equity incentive plan will be more attractive to employees, which is conducive to attracting and retaining the best employees.
Of course, the listing of companies also has disadvantages, such as more commercial information disclosure, higher risk and cost of violation, and dilution of company equity. Generally speaking, listing a company has advantages and disadvantages, that's all. I hope it helps you.