Question

In: Finance

is a corporation going public better than staying private?

is a corporation going public better than staying private?

Solutions

Expert Solution

YES, going public is more better for a corporation than being private because of the following reasons-

A. When a Corporation will be going Public, it will be having an opportunity of raising a higher amount of capital

B. when the corporation will be going public it will also have an opportunity of getting into other markets as well because investors from all across the globe are investing into different share market.

C. it will also offer them with an increasing chance of increasing market share in various economies

D. It will also lead to increasing the probability of potential mergers and acquisitions between various other companies in different countries and domestic country

E. it will be leading to increase in the value of the company through increase in the market capitalisation

F. The company will be trying to to protect the best standard of maintenance of the books of accounts and higher disclosing norms so there will be lower possibility of fraud.


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