1. has opened up new direct financing channels, although the cost of equity financing is generally higher than that of debt financing in the standardized market.
2. The company becomes the public after listing, which plays a certain role in promoting the company's brand.
3. After listing, a set of standardized management system and financial system must be established according to regulations. 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 will only be held by a small number of people. When a company develops to a certain extent, it needs funds to develop. Listing is a good way to attract funds. Companies put some of their stocks on the market, set a certain price, and let these stocks trade 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 6,543,800 shares, the chairman holds 5,654,380 shares, and the remaining 490,000 shares are put on the market for sale, 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 in this case, 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.