Why a company enters Stock Market ?
If you are running a company let it be Stupid Idiot Company (SIC) . You are the owner of SIC (100%) . Let your company today is worth 100 crore. Now you want money to expand your company. You can release shares of your company , let be worth 100 crore more. You will have 100 crore to do expansion . And company is now worth 200 crore. And your ownership is 50 %. You will still be the majority holder and thus you will run the company.
Releasing the Shares to public is called IPO or initial public offering.
1 comment:
good work ....keep it up ....will give some inputs later ...for the time being ,ur STUPID IDIOT CO doesn't have to sell 50% stake in order to get another 100 crores....if it is reputed enough(i m sure with that name it is famous enough)then selling even 10%stake can get u 100 crores...i hope i xplained it well....correct me if i am wrong..and by the way check ur mail and messenger..
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