What does it mean when a company “goes public”?
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It means that the company becomes listed on a stock exchange, and anyone can purchase stock from the open market instead of one having to find a specific seller and making a closed deal. On the stock market, every transaction is listed, so you can have a better idea of what other people believe the stock is worth.
It means that the company becomes listed on a stock exchange, and anyone can purchase stock from the open market instead of one having to find a specific seller and making a closed deal. On the stock market, every transaction is listed, so you can have a better idea of what other people believe the stock is worth.
Going public refers to a company that is switching from being privately held where ownership of the company is limited to individuals such as founders or investors to being publically traded on an exchange where anyone can purchase a share of ownership in the company.
When the company “goes public” they have an initial public offering “IPO” where shares of the company are offered to the public and then after that date those shares can be bought and sold by the public on the exchange.
Going public refers to a company that is switching from being privately held where ownership of the company is limited to individuals such as founders or investors to being publically traded on an exchange where anyone can purchase a share of ownership in the company.
When the company “goes public” they have an initial public offering “IPO” where shares of the company are offered to the public and then after that date those shares can be bought and sold by the public on the exchange.
It means that they begin offering shares (portions of ownership) for sale in the public markets – the most famous of these is the New York Stock Exchange (NYSE). Prior to going public, portions of the company can be bought or sold, but this is done via individual transactions between the current owner(s) and buyer(s); going public greatly simplifies the sales process, as portions of ownership are commodified and sold in a large marketplace.
Going public is not an easy task. There are many regulatory hurdles that a company must clear in order to be listed on a public stock exchange, as well as quarterly/yearly compliance activities they must undertake. The advantage is that going public generates a _huge_ cash infusion for both the company in original investors.
It means that they begin offering shares (portions of ownership) for sale in the public markets – the most famous of these is the New York Stock Exchange (NYSE). Prior to going public, portions of the company can be bought or sold, but this is done via individual transactions between the current owner(s) and buyer(s); going public greatly simplifies the sales process, as portions of ownership are commodified and sold in a large marketplace.
Going public is not an easy task. There are many regulatory hurdles that a company must clear in order to be listed on a public stock exchange, as well as quarterly/yearly compliance activities they must undertake. The advantage is that going public generates a _huge_ cash infusion for both the company in original investors.
It means they sell stock in the company on a stock exchange like the New York Stock Exchange or NASDAQ. This allows investors to buy shares in the company, while the company, it’s VC investors and founders/employees get money to grow the business and pull equity off the table.
It means they sell stock in the company on a stock exchange like the New York Stock Exchange or NASDAQ. This allows investors to buy shares in the company, while the company, it’s VC investors and founders/employees get money to grow the business and pull equity off the table.
If I start a “private” company, I get to choose who invests in me. It’s great because it keep more control over the direction and priorities of my company. I also don’t want to waste my time with smaller investors that only want to invest $100 or so. However, that is a bit limiting in what kinds of people can/will invest in my company.
If I “go public” I list my company on a public stock exchange. Now EVERYBODY with a dollar bill in their hand can invest in my company. It’s great, because now many many more people can make investments large or small in my company if they believe in me. It brings some other complications because there are a lot more rules about how I have to report and manage my company’s finances, and I now have to behold myself to shareholders who may have different financial interests.
If I start a “private” company, I get to choose who invests in me. It’s great because it keep more control over the direction and priorities of my company. I also don’t want to waste my time with smaller investors that only want to invest $100 or so. However, that is a bit limiting in what kinds of people can/will invest in my company.
If I “go public” I list my company on a public stock exchange. Now EVERYBODY with a dollar bill in their hand can invest in my company. It’s great, because now many many more people can make investments large or small in my company if they believe in me. It brings some other complications because there are a lot more rules about how I have to report and manage my company’s finances, and I now have to behold myself to shareholders who may have different financial interests.
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