What are the Public Market Options to Secure Funding in the U.S.? Regulatory Challenges, and Trends Related to Companies Going Public in the United States
Secure funding for a corporation can be done through either public markets or private markets, and each has a distinct characteristic. Public Market Access to Capital Public markets provide access to a large pool of capital by allowing the general public to invest in a company’s shares or debt. Liquidity Shares traded on public markets are highly liquid, meaning that they can be bought and sold easily on stock exchanges. Regulatory Requirements Companies must adhere to strict regulatory standards, including regular financial reporting and disclosure to the Securities and Exchange Commissions (SEC). Market Valuation The value of a company is continuously determined by the market, reflecting in the share price. Investor Base A public company can attract a diverse range of investors, including institutional and retail investors. Private Market Investor Profile Private markets typically involve investments from a...