What if they got stuck in some scandal? IPO is also a way to shield the company from action of an evil executive.
If some politician has a beef with a private business, they can potentially cause them enormous loss.
But no politician would like to take some action which might cause public losing money because of the fear of losing their support through votes.
Not only this, it's also a feedback mechanism. A company exceeds quarterly expectations, more people jump to buy their shares as a result executives sell and profit. And large companies will have projects which might take long to profit, but they can be immediately judged on their next move post IPO. How will this work in a private company?
Comments
What if they got stuck in some scandal? IPO is also a way to shield the company from action of an evil executive.
If some politician has a beef with a private business, they can potentially cause them enormous loss.
But no politician would like to take some action which might cause public losing money because of the fear of losing their support through votes.
Not only this, it's also a feedback mechanism. A company exceeds quarterly expectations, more people jump to buy their shares as a result executives sell and profit. And large companies will have projects which might take long to profit, but they can be immediately judged on their next move post IPO. How will this work in a private company?