In addition, a successful public offering increases the visibility and appeal of your company, thereby escalating the demand and value for shares of your company. Investors can benefit from an IPO not only because of the potential increase in market value for their stock, but also because publicly-held stock is more liquid and can be readily sold if the business appears to falter or if the investor needs quick cash. The availability of a public market for shares will also help determine the taxable values of the shares and assist in estate transfers. Work Smart Publicly traded stock can also make a business more attractive to prospective and existing employees if stock option and other stock compensation plans are offered. Employee stock-based programs are worth more if transfer restrictions, such as those normally accompanying private company stock, are not placed on the stock.
Securities laws are complicated.
However, it's not always clear where the exemptions end, so you should always consult a knowledgeable attorney before selling any stock in your company. The process of soliciting money from the public through the issuance and sale of securities requires a working knowledge of the state and federal registration statements concerning the securities to be sold, complex disclosure documents about the company with detailed information for potential investors, and financial statements.