Good question Dock... here's what a few knowledgable sources have to say about that... ------------------------------------------------------------------ from SBA.GOV comes this; http://community.sba.gov/node/46093 "Businesses chose to become public entities for many reasons. It's important to weigh the 'pros' and 'cons' before making such a decision. Important benefits... •Your access to capital will increase - many companies 'go public' to raise additional funding that doesn't need to be paid back •Your business will have direct access to capital markets and can raise additional funds by issuing additional stock in a secondary offering •You'll generally have an easier time raising private funds •Your business will become more recognizable and gain credibility •Business can often attract more highly qualified employees by offering stock options, bonuses, and other incentives with a known market value •Public companies are worth more than private companies" ------------------------------------------------------------------ and from a few other sources; ** http://www.tcc5.com/public-company.php ** http://pages.stern.nyu.edu/~adamodar/New_Home_Page/invfables/ipo.htm "When a private firm becomes publicly traded, the primary benefit is increased access to financial markets and to capital for projects. This access to new capital is a significant gain for high growth businesses, with large and lucrative investment opportunities. A secondary benefit is that the owners of the private firm are able to cash in on their success by attaching a market value to their holdings. Thus, owners can become very wealthy individuals overnight."
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.