Process by which shares of common stock are first offered for sale in the
public markets (through the organized exchanges or over-the-counter); also
called an initial public offering.
The advantages of going public must be weighed against the disadvantages.
Going public may give the company and major stockholders greater access to
funds, as well as additional prestige and wealth.
It also means that shares assume a market value - a value placed on expected
future earnings. On the other hand, the company must open its books to the
public through stock exchanges and state filings and put up with pressure for
short-term performance by security analysts and large institutional
Going public means altering the organization of a corporation from ownership
and control by a small group of people, as in a close corporation, to ownership
by the general public, as in a publicly held corporation.
When a corporation goes public, it opens up the sale of shares of its stock
to the public at large.
(For more biz stories, please visit Industry Updates)