Top 8 Reasons Why You Should List Your Company in the Stock Exchange

Listing or Stock Exchange Listing, as many people call it, is the process of making a transition from a private organization to a publicly-owned entity wherein all or some shares of the company can be traded in the stock exchange. The ability to have the company’s shares traded in the stock exchange is fundamental to an organization’s decision to have the company listed.

Essentially, stock exchange brings the capital providers and the organizations that require capital, together in one marketplace. The stock exchange undertakes this simple yet effective role in many countries and as such, acts as a hub at the core of many countries’ economy. Capital providers earn a Return on Investments (ROI) through capital growth and dividends, thereby increasing the country’s overall wealth. Likewise, the organizations in which the capital providers invest offer and provide employment, thereby driving the company’s economic development. These are just two benefits of having a company listed in the stock exchange but on a more personal side, there are 8 reasons why you should list your company in the stock exchange. Read through and find out what these 8 reasons are:

o Capital Growth

Stock Exchange listing provides opportunities to both the investor and the listing company. The listed company finds a great opportunity to increase its primary capital for market’s organic growth and acquisition funding. On the other hand, the investors investing on the listed company can easily grow their savings through dividends and share price fluctuations.

o Corporate Profile Elevation

Stock Exchange Listing generally raises the public profile of the organization with their customers, investors, suppliers and media. Companies listed in the stock exchange usually become a part of analyst reports and are usually included in the index.

o Improvement in the Company Valuation

Generating an independent valuation becomes possible when a company is listed in the Stock Exchange.

o Institutional Investment

It is easier for an organization to attract institutional investors or other companies who wish to invest on other companies. This simply means availability of both expertise and capital.

o Trading Platform

Many stock exchange companies offer an ideal trading platform for the company’s shares. These companies also give their shareholders a great opportunity to realize the value of their shareholdings, which eventually, can help the company expand its shareholder base.

o Alignment of management/employee interests

The process of compensating the company executives, directors and employees with shares becomes simple, making it easier and more flexible to align the company employees’ interests with the goals and objectives of the organization.

o Reassurance of Suppliers and Customers

The organizations listed in the Stock Exchange generally find improvement in their business and financial strength.

o Exit Strategy for Investors

Stock Exchange listing provides the founders and investors of the company a mechanism to easily exit their investments.

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