6 Reasons to offer your company to the stock-market

1. - You need more money. This one is one of the main reasons to emit shares of a company for its sale to the public. Perhaps in this case, it has established an income-producing company and it needs capital to grow. It has already gone to his banker and obtained some cash by privates investors or by a risk capital, but now really it needs much money and a banker of investment.

2. - The company is new (a company of Internet, for example). and you need enormous amounts money to gain participation in the market. The market provides you money, although its company is not income-producing at the moment, because the market is investing in its future gains.

3. - Often a company will use its own shares to acquire other companies. It is what usually is called “to print your own money”. In the corporative world it is called “fusions and acquisitions”.

4. - You want to sell your company without losing the control. In a private company, the owner frequently gives the control or obtains a new partner who means how to direct the business to him when he collects capital. When obtaining the money of the public market, the proprietor obtains cash when selling, but it maintains the control of the business. Many shareholders have little power to influence in the operations of the company in which they have invested.

5. - For reasons related to the familiar patrimony, Ford Motor Company emitted shares to the public because the family had many heirs but lacked liquidity. When selling to the public a part of the company, they collected the cash that the family needed for the heirs. The way is interesting in which a private company uses this strategy.

6. - To become rich and to invest in other parts. To create a business looks like to construct a building of apartments and to sell it. When you construct a business to sell it by shares of a public supply, only one part of the assets fragments; it is divided in million parts that are sold the public. The creator can then continue being the owner of the majority of the shares, and still maintain the control and generate much money when selling it to million buyers (instead of a single buyer). The good things come in small packs.