Going public enables a firm to raise more capital with less dilution than occurs with private placements or venture capital.

Question

Quizplus · Accepted Answer

Going public allows a company to raise funds from a wide range of investors through an Initial Public Offering (IPO) or a follow-on offering, which can result in more capital being raised with less dilution compared to private placements or venture capital. This is because public offerings typically involve a larger number of shareholders buying shares in the company, while private placements or venture capital often involve fewer investors who may require a larger stake in the company in exchange for their investment.

Going Public Enables a Firm to Raise More Capital with Less