Going public is always a tantalizing prospect for any private company hoping to spur growth. Most companies go public by filing the appropriate forms with the SEC. If the SEC approves the IPO, the company’s stock is listed for public sale on a stock exchange. Though there are some smaller exchanges with promise, most companies choose to list on the NASDAQ or the NYSE.
The Pros and Cons of Going Public
When they go public, private companies lose a certain degree of autonomy and flexibility. Nevertheless, having an IPO is arguably the best way to raise a good deal of capital fast. Besides bringing in capital investment, having an IPO provides liquidity for early investors. Keeping your first investors happy can help you maintain profitable, long-term business relationships. IPOs can enable you to pursue mergers and acquisitions that once seemed beyond reach. Though angel investors have their value, they can be conservative and hidebound. Going public allows you to advertise your shares to a more diverse cross-section of the investing public.
Choosing the Right IPO Transfer Agent
To make sure your offering goes off without a hitch, you’ll want to select the right IPO transfer agent. This type of financial services firm manages and tracks all registered shareholders in your company. Under current regulations, all companies must work with a transfer agent while preparing for an IPO. To learn more about this issue, simply visit https://www.colonialstock.com/ and network with the helpful team at Colonial Stock Transfer Company, Inc.
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