How does the company go public?

The advantages of listing on the standardized capital market are: 1, which opens up a new direct financing channel, although in the standardized market, the cost of equity financing is generally higher than that of debt financing. 2. Becoming a member of the public after the company goes public will play a certain role in enhancing the company's brand. 3. After listing, a set of standardized management system and financial system must be established according to regulations. It can improve the management level of the company. Therefore, in mature markets, not all companies want to become listed companies, because listed companies are subject to stricter supervision and higher costs. Listed companies: Most companies are joint-stock companies. Of course, if the company is not listed, these shares are only in the hands of a small number of people. When the company develops to a certain extent, it needs funds to develop. Listing is a good way to attract capital. A company puts some of its shares on the market, sets a certain price, and allows these shares to be traded in the market. The money from the sale of shares can be used for further development. A stock represents a part of a company. For example, a company has 6,543.8+0,000 shares, the chairman holds 5,654.38+0,000 shares, and the remaining 490,000 shares are sold in the market, which is equivalent to selling 49% of the company's shares to the public. Of course, the chairman can also sell more shares to the public, but there are certain risks. If the malicious acquirer holds more shares than the chairman, the ownership of the company will change. Generally speaking, listing has both advantages and disadvantages. 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 agency problem between managers and company shareholders 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.