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Article: Swapping privacy for growth: one way of turning a small successful company into a big successful company is to find lots of people to invest in it. And, one way of doing that is to turn a private firm, which doesn't offer shares to the public, into a public one, which does. (Public Versus Private Companies).(related articles: All in the family: family corporations; A dynasty crumbles: Timothy Eaton Company)
- Article from:
- Canada and the World Backgrounder
- Article date:
- May 1, 2003
CopyrightCOPYRIGHT 2003 Canada & the World. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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There are a lot of reasons for a company to go public, but primarily, it's to raise money. Going public means selling shares in the business to anybody who wants to buy them.
Growing companies continually need funds for: expansion; paying off existing debt; corporate marketing and development; buying other businesses; and, a host of other reasons. And, once public, it's easier for a company to raise more money if it needs to--by returning to the market with a second share offering. There's also an element of prestige in having a listing on the stock exchange: it presents an image of stability that can attract key employees as well as increase business ...