Going Public Service
of Becoming a Public Company
A companys access to capital will increase, since
it can contact more potential investors.
A company may become more widely known.
A company may obtain financing more easily in the future
if investor interest in the company grows enough to sustain
a secondary trading market in its securities.
Controlling shareholders, such as the company's officers
or directors, may have a ready market for their shares,
which means that they can more easily sell their interests
at retirement, for diversification, or for some other
A company may be able to attract and retain more highly
qualified personnel if it can offer stock options, bonuses,
or other incentives with a known market value.
The image of the company may be improved.
Information A company must continue to keep shareholders
informed about the company's business operations, financial
condition, and management, incurring additional costs
and new legal obligations.
The company may be liable if it does not fulfill these
new legal obligations.
A director may lose some flexibility in managing the company's
affairs, particularly when shareholders must approve any
A public offering will take time and money to accomplish.
Only little Costs of Going Public with MapleCanada