Reasons Some Companies Choose Stock Market Listing
There are several reasons why companies choose to list their stock on the stock market. First and foremost, listing can provide additional capital for businesses by allowing them to sell shares of the company's ownership in exchange for cash. This allows a business to grow rapidly and expand quickly without having to rely solely on debt financing or venture capital. Additionally, public listing provides enhanced visibility for a company both domestically and abroad which can lead to increased sales from heightened consumer awareness. Furthermore, being listed on an exchange lends credibility within the investment community which may increase investor interest in the company’s securities thus providing additional liquidity for shareholders if they wish to exit their position at any time. Finally, listing also gives employees an opportunity to participate financially in the success of their employer through employee stock ownership plans (ESOPs). Companies may choose to list on the...