Why would firms opt to go public?
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When companies decide to shift from private to public financing by making an initial public offering for their stock, they are likely to face increased costs of investor communications. Given this additional cost, why would firms opt to go public? (2 to 3 sentences answer please)
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This solution explains why firms would opt to go public.
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Firms decide to go public to access equity capital from public investors. Going public generates additional capital for growth without the risks of debt or the restrictions that may be demanded by venture capitalists. A company's ability to raise additional capital is ...
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- BComm, University of Delhi
- Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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