Firms go public primarily to:

Question

Quizplus · Accepted Answer

Firms go public primarily to raise additional capital by selling shares of their stock to individual and institutional investors. Going public allows the company to access a much larger pool of investors and raise more capital than through private means. While diversifying public debt holders' risk and increasing financial leverage may be secondary benefits of going public, they are not the primary reason for doing so. Maintaining ownership control is not a benefit of going public, as the company's owners typically have to give up some degree of control in exchange for raising capital through a public offering.

Firms Go Public Primarily To