Disadvantages of An IPO
There are several disadvantages to completing an initial public offering:
- Significant legal, accounting and marketing costs, many of which are ongoing
- Requirement to disclose financial and business information
- Meaningful time, effort and attention required of senior management
- Risk that required funding will not be raised
- Public dissemination of information which may be useful to competitors, suppliers and customers.
Read more about this topic: Initial Public Offering
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