What does it mean when a company “goes public”?
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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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