1, normal enterprises are short of money;
2. With money, we can expand our scale and improve our competitiveness.
3. The borrowing rate is low, and the production profit of the enterprise is high. It's better to make money with other people's money.
Why does the company want to go public by financing?
Let me explain the listed company first: A listed company refers to a joint stock limited company whose shares are listed and traded on the stock exchange with the approval of the securities management department authorized by the State Council or the State Council. Then explain the financing of listed companies: some economic activities such as capital integration and stock trading after listing of listed companies are called financing of listed companies. On the basis of listed companies, I can explain listing to you: listing means entering the exchange to trade share capital. The company has a registered capital of more than 5,000 W, and has been in business for more than 3 years. A considerable number of shareholders and 1000 people hold shares with a face value of more than 1000 yuan, and there is no economic violation within 5 years. Only when these conditions are met can the company go public.
Why do companies need financing before listing?
There are three reasons for pre-listing financing:
First, the introduction of strategic investors before listing can enhance the overall image of the company and improve the stock issue price and financing effect at the time of listing. Overseas strategic investors are generally overseas listed companies or well-known venture capital funds, which are obviously attractive to public investors in the capital market, and even many strategic investors can provide business support and help for companies. For example, Bank of Communications recently listed in Hong Kong and introduced the strategic investor HSBC, which has achieved good financing effect and market outlook performance. Second, the introduction of strategic investors before listing can obtain foreign exchange funds needed for overseas restructuring. In the past, the red chip operation was to set up a sea shell company with the original shareholders, and then the sea shell company acquired domestic enterprises. The acquisition process needs foreign exchange funds, and the funds of strategic investors can be used for this purpose.
Third, the introduction of strategic investors before listing can get the listing fee. If an enterprise pays a lot of expenses in its operation, it may bring pressure to the company's cash flow. If you introduce strategic investors overseas, you can pay directly overseas, which is relatively simple.
Why do companies need financing before listing?
There is no hard and fast rule that enterprises need financing or complete several rounds of financing before going public. Many companies don't raise money before listing, or some only raise money once. Most of the two rounds of financing occurred when enterprises were short of money. First, introduce the first round of financing to meet the capital needs of enterprises. Before applying for listing, the second round of financing is carried out in order to adjust the ownership structure or let the first round of financiers withdraw smoothly or further meet the capital gap. In general, the first round of financing is small in scale and high in cost.
What is the function of financing? Why financing?
Listing financing is similar to equity financing, but the difference is that it is a listed company or a non-listed company. Shareholders (small and medium shareholders) expect the return of stock price growth, while investors (such as equity venture capitalists) expect future growth or future listing. For enterprises, although shareholders' rights and interests are diluted, it can help enterprises obtain considerable funds, solve operational difficulties or make enterprises go further.
As for financing obtained through other creditor's rights and mortgages, for lenders, they hope to obtain interest income. Although this kind of investment is accompanied by certain trust and operational risks, it can be avoided as much as possible by mortgage or pledge. Actually, it's similar to a bank loan. Simply put, a house is collateral. For enterprises, this kind of financing is to solve the short-term financial obstacles of enterprises.
There are many other financing methods. I won't list them all, but I have a long list. I suggest reading some books on banking, guarantee and listing.
One is their own problems,
There is something wrong with your own funds.
Lack of liquidity
There is a crisis in enterprise management.
Secondly, the so-called big enterprise is to become a bigger enterprise.
Need financial support
There is also the transformation of enterprises and so on.
Generally speaking, it is because of the first reason, and the external statement is the second reason.
It is worth mentioning that
Enterprise financing risks are great.
When a company announces financing,
The next day, the company's stock will fall sharply.
Why do start-ups need financing?
1. Risk financing is the key link in implementing business plan.
2. Venture financing can reflect the good credit level of enterprises or entrepreneurs.
3. Venture financing is an important means for entrepreneurs to seize entrepreneurial opportunities in time.
4. Venture capital financing is the premise of grasping venture capital opportunities.
What is corporate financing?
Financing and fund-raising are financial arrangements made by enterprises to obtain funds. If it is specific to an enterprise, there is still a difference between the two from the point of view of whether the funds of the enterprise come from outside or inside the enterprise. Financing refers to the way to raise funds from outside the enterprise, including direct financing and indirect financing. Among them, direct financing mainly refers to the way of raising funds directly from shareholders, investors and other fund holders, such as issuing shares in the stock market to obtain the funds needed for the development and operation of enterprises; Indirect financing mainly refers to the way to obtain funds through banks, finance companies, trust companies and other financial institutions by borrowing long-term and short-term loans and issuing bonds. In addition to raising funds from outside the enterprise, that is, financing, financing activities should also include reasonable arrangements for internal funds of the enterprise, such as after-tax profits, depreciation, investment income, etc. In order to raise funds for the development of a project. From this perspective, the concept of financing is greater than the concept of financing.
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What is the function of financing? Why financing?
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Why don't some enterprises need financing?
How can there be a company that doesn't need financing? It is foolish to operate entirely with your own funds. Use financial leverage, small and large. On the surface, some enterprises have rich profits and abundant funds, but the funds will not be idle on the books and some investments must be made. And all enterprises should constantly expand their scale, acquisition and expansion, because operators have an impulse to invest. Operators care about the size of the cake and don't care about the profit rate, so operators will continue to expand their scale and invest abroad. Once there is a capital demand or foreign investment expansion, financing is still needed.
Why do listed companies need financing when they have so much money?
There are two classes in the stock market, the money-circling class and the quilt cover class.