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

Question

Quizplus · Accepted Answer

Going public can help companies raise large amounts of capital by offering shares to the public, resulting in a higher valuation than what would be obtained through private placements or venture capital. This reduces the amount of dilution that occurs when selling equity to investors, which in turn allows the company to retain a larger percentage of ownership and control.

Going Public Enables a Firm to Raise More Capital with Less