Going public

There are two prime motivators for taking a privately held company public, through an initial public offering (IPO):

1. What your company needs: access to more capital and more capital sources, than is available to a privately held company.

2. What is best for the founding shareholders: a public market for the shares of the company allowing the shareholders to sell some of the stock they've accumulated through previously investing in the company, or earned through deferred compensation.

Search again for other issues on this topic, such as advantages and disadvantages.