Advantages and disadvantages of listed companies

Benefits: 1 Get funding. The boss of the company sells a part of the company to the public, which is equivalent to letting the public take risks with themselves. For example, if you lose 100%, you lose 100, lose 50%, and you only lose 50. 3. Increase the liquidity of shareholders' assets. 4. Escape from the control of the bank, there is no need to take the bank loan exam. 5. Improve the transparency of the company and increase public confidence in the company. 6. Improve the company's popularity. 7. If certain shares are transferred to managers, the contradiction between managers and company holders can be improved. There are also disadvantages: 1. Going public costs money. 2. While enhancing transparency, many secrets are exposed. 3. Inform shareholders of the company's information at regular intervals after listing. 4. It may be maliciously controlled. When listing, if the stock price is set too low, it will be a loss for the company. In fact, this is a common practice, and almost all companies will set their share prices lower when they go public. Listing can first reduce excessive dependence on bank loans. After listing, enterprises get capital from the capital market, and the asset-liability ratio is greatly reduced. Dependence on bank loans will be reduced, and the credit rating in banks will be improved. When the policy suddenly stops, we will not be too worried about the shortage of capital chain. Secondly, financing refinancing brings the multiplier effect of funds. "Vanke was the first to resell pig feed, and it gained many development opportunities through refinancing." Introduce scientific corporate governance. "The stock market is like a magnifying glass. Doing well or not will cause a strong reaction. " He said that the listing of private enterprises can increase the flexibility of corporate governance, and the listing of family enterprises can move from a closed family system to an open one. In addition, listed companies have independent directors, who are experts in various industries, which is equivalent to hiring an expert around them at a low price. There are also free consultation and advertising effects. "It costs millions of yuan to insert advertisements in the Spring Festival Evening," he said. After listing, the major media mentioned it countless times every day. Top analysts of securities companies often conduct research and forecast of industry prospects for free. 1. The company's initial public offering can raise a lot of funds, and there are opportunities for refinancing after listing, thus providing a source of funds for the further development and growth of the company. 2. It can promote enterprises to establish a standardized management mechanism, improve the corporate governance structure, and constantly improve the quality of operation. 3. Stock listing needs to meet strict listing standards and pass the audit of regulatory agencies. The listing of a company is a powerful proof of its management level, development prospects and profitability. 4. The information of stock trading is constantly released to the society through newspapers, TV stations and other media, which expands the company's popularity, improves the company's market position and influence, and helps the company establish its product brand image and expand its market sales. 5. Stock options can be used to effectively motivate employees and management, help the company attract outstanding talents, stimulate the enthusiasm of employees, and thus enhance the company's development potential and stamina. 6. The listing and circulation of stocks expand the shareholder base, making stocks have high trading liquidity, and the free trading of stocks can also make it easier for shareholders to cash their investment capital under certain conditions. 7. The listing status of the company will help to improve its own credit status, enhance the confidence of financial institutions in the enterprise, and provide convenience for the company's bank credit and other businesses. 8. The change of stock price after listing forms the market evaluation mechanism for the company's performance. 9. Going public and becoming a public company will help the company to better assume more social responsibilities.