Explore BrainMass
Share

Organization Decision to Go Public

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

I have to write a paper about an organization's decision to go public. I'm looking for both sides of the argument; advantages and disadvantages. As usual, I'm just looking for 200-300 words to get off and running.

.

© BrainMass Inc. brainmass.com September 24, 2018, 9:50 am ad1c9bdddf - https://brainmass.com/business/business-policy-and-implementation/organization-decision-public-561552

Solution Preview

There are a few main advantages and disadvantages in this area. The main advantage is that it gives the company an opportunity to attract investors. The company then has more capital to work with, and the company's stock begins to increase in value. As long as management can maintain positive growth in gross revenues, the upward trend of increased investments from investors generally continues. Issuing an IPO or "going public" also helps the company from a creditor standpoint. Creditors are more likely to extend higher lines of credit to companies that are ...

Solution Summary

This solution discusses an organization's decision to go public.

$2.19