In 100 words or more reply to the statement below about why small businesses go public
The main reason why small business go public is by going public, the company will improve its financial condition by obtaining money that does not have to be repaid. Stock in the company can be used in part to finance acquisitions of other companies. The bad thing about the company going public is when a company goes public, management loses some of its freedom to act without board approval and approval of a majority of the shareholders in certain matters. Shareholders tend to judge management in terms of profits, dividends and stock prices. This can cause management to emphasize short-term strategies rather than long-term goals.
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