Public company
A public company is a company permitted to sell its shares to the general public. Its shares may be listed on the stock exchange through an initial public offering (IPO).
A public company has the following advantages:
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Unlimited number of shareholders means unlimited growth potential.
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Shares are freely transferable.
The disadvantages of public companies are that:
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Filing and disclosure filings are onerous.
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Costs associated with meeting regulatory requirements are higher.
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Liability risks are higher for the company and management.
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