25 May 2020
Can anyone please tell me what are the benefits for listed company and their losses ? For Employees Points of View . For company point of view . for society point of view for government point of view for whole country point of view
25 May 2020
Benefits of Listing / Going Public Listing means the formal admission of securities of a company to the trading platform of the Exchange. It is a significant occasion for a company in the journey of its growth and development. It enables a company to raise capital while strengthening its structure and reputation. It provides liquidity to investors and ensures effective monitoring of compliance of the issuer and trading of the securities in the interest of investors.
A LISTING STATUS COULD OFFER A COMPANY THE FOLLOWING BENEFITS:
Access to Capital for Growth Most companies reach a level wherein additional capital is required to be infused to fund the company's growth / expansion plans. Going public is thereby a method of overcoming these constraints. By listing on a Stock Exchange, the company increases shareholder base and enhances credibility.
Enhanced Visibility Going public improves company’s visibility and credibility among institutions and the investing public due to complying with various regulatory norms and ensuring transparency while conducting operations.
Liquidity Listing stimulates liquidity, giving shareholders the opportunity to realize the value of their investments. It allows shareholders to transact in the shares of the company, sharing risks as well as benefitting from any increase in the organizational value.
Increase in employee morale Going public increases visibility and improves public perception of the organization, thereby increasing employee value and morale. It may also lead to hiring of new staff and may facilitate stock-based payments such as ESOPs etc.
Transparency and efficiency Listing brings transparency and efficiency in the overall operations of the company. The board and management team of a listed company has accountability towards it shareholders. Further, listed companies also need to ensure timely compliance by providing information / disclosure to the Exchange / shareholders as laid down in the Listing Agreement or applicable guidelines.
25 May 2020
sir am satisfied with your answer but can u please more elaborate it that , Just for making goodwill and brand name ,why company should pay very high listing fee and involve itself in the very hard role of complaisance such as listing compliance securities law compliance and many more . so is there any more benefit of listing of company for company itself or society or country or govt or any other stakeholder ? because as we know listed company having much more formalities and compliance to follow . This question is asked by MD of company from companies compliance department that why r u paying such higher listing and other fees ?
25 May 2020
1 Listing compliance ensures safety of fund invested by shareholders. 2 Listed companies earns more and pays more to government by way of taxes. 3 To the society supply goods at economical cost on view of higher scale of production. 4 Compliance cost is not much when compared to the cost of funds they raise. Funds raising cost is less.
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