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匿名 發問於 商業及金融其他 - 商業及金融 · 1 十年前

What is the Adv & Disadv for a co. go to the stock mkt?

What is the benefits and disadvantages for a company raising money from the stock market?

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  • 1 十年前
    最愛解答

    Adv:

    - No obligation to pay interest or dividend to shareholders

    - Not subject to covenant as in bank loans

    - Increased publicity and creditability

    - relatively easy to raise large amount of fund

    Disadv:

    - control diluted due to public shareholding

    - subject to more regulation (Listing Rules) and supervision (analyst)

    - No tax benefit as dividend is not deductible for tax

    - Huge finanacial and time costs to hire professional for IPO

    - subject to market fluctuation

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