What does listing mean? It's easy to understand.

When the company develops to a certain extent, it needs funds to develop. Listing is a good way to attract capital. A company puts some of its shares on the market, sets a certain price, and allows these shares to be traded in the market. The money from the sale of shares can be used for further development. A stock represents a part of a company. For example, a company has 6,543.8+0,000 shares, the chairman holds 5,654.38+0,000 shares, and the remaining 490,000 shares are sold in the market, which is equivalent to selling 49% of the company's shares to the public. Of course, the chairman can also sell more shares to the public, but there are certain risks. If the malicious acquirer holds more shares than the chairman, the ownership of the company will change. Generally speaking, listing has both advantages and disadvantages.

Benefits:

1, get the funds.

2, the boss of the company sells a part of the company to the public, which is equivalent to finding the public to take risks with himself, such as 100% holding, losing 100, 50% holding, only losing 50%.

3. Increase the liquidity of shareholders' assets.

4. There is no need to take a bank loan to escape the control of the bank.

5. Improve the transparency of the company and increase public confidence in the company.

6. Improve the visibility of the company.

7. If certain shares are transferred to managers, the agency problem between managers and company shareholders can be improved.

There are also disadvantages:

1, listing costs money.

2. While enhancing transparency, it also exposes many secrets.

3. Inform shareholders of the company's information at regular intervals after listing.

4, it may be malicious control.

When listing, if the stock price is set too low, it will be a loss for the company. In fact, this is a common practice, and almost all companies will set their share prices lower when they go public.