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A company goes public when shares in that company are offered for sale (floated) on a stock exchange somewhere in the world. At that point the ownership (or a share of the ownership) of the company passes to the people purchasing those shares - the public! Before this flotation the company will have been owned privately and the flotation produces funds which goes to these owners as they are in effect selling their property.
Initial public offering
Advantage: Large cash injection. Disadvantage: In the long term it is more expensive.
There are many disadvantages of selling concepts. One major disadvantage is that people might not trust your judgment or sale.
The most important department in a company is the sale department because it brings money to the organization and let it stay alive. No company survives without sales.
The company can increase its capital without going into debt.
the company can increase its capital without going into debt
Definition: Initial public offering is the process by which a private company can go public by sale of its stocks to general public. After IPO, the company's shares are traded in an open market.
parts of a company listed for sale on stock exchange.
You purchase shares in the company. This will only be possible if the shares are for sale. If it is a public company you can buy the shares on the stock exchange where those shares are traded. If it is a privately owned company you would need to buy the shares from one of the owners.
stock markerts
stocks or shares
Initial public offering
A private company has no shares. A private company can go public through a so called IPO (initial public offering) and thereby issue stock to raise capital. It then becomes a corporation compared to a sole proprietorship. A private company also know as private ltd company can also issue share but no in the public but among closed group. The share are not will not be open for sale to the public until the company goes public.
Most of the time, the new companies will offer their shares at discount prices. There is no law that governs/controls the prices at which the company can offer their shares to people for sale.
A prospectus is required when a company wishes to raise money through a public offering or sale of it's stock.
stocks or shares