Week 1 Valuation 3 - some of the disadvantages or...

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There are financial benefits such as generating more capital which will aid in further expanding the company. That capital may also be used as a means of funding research and development. Also going public leads to more consumer awareness and the ability to make their products know to new potential customers which can consequently lead to a gain in market share. The company I work for has been very successful financially and has acquired other companies and continued to expand ever since they went public. The article below describes the advantages I mentioned above as well as going on to mention
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Unformatted text preview: some of the disadvantages or challenges. These challenges include:-added regulation by the Securities Exchange Act of 1934 as well as the Securities and Exchange Commission-the need for more disclosure for investors and added market pressure- the cost of complying with all these new regulations can be very high and difficult for small companies to endure Source: http://www.investopedia.com/ask/answers/06/ipoadvantagedisadvantage.asp...
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This note was uploaded on 03/26/2012 for the course BUS GM560 taught by Professor Fields during the Summer '10 term at Keller Graduate School of Management.

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