Eli5: How does a private owned company benefit itself financially by going public?

Question

Eli5: How does a private owned company benefit itself financially by going public?

In: Economics

Answer 1

Well, for one, the firm gets *a ton* of money to finance operations/expansion/whatever. That’s really the primary goal. For the private owners, it’s often a great opportunity to sell their stake and cash out. Otherwise, their stake is often worth a lot more because, well, now there’s demand for it from investors.