Best Advantages of Stock Market

Fundraising

For a company, listing on the Stock Exchange has several advantages: its notoriety is greatly increased among its customers and suppliers, and this notoriety is able to increase future success. Stock Trading strategies If it is well managed, the financial communication imposed on any listed company can also give rise to publicity, the repercussions of which will also be commercial.

The main advantage of listing a company is also the possibility that is always open to appeal to the markets for financing (issue of new shares and/or capital increase, issue of bonds, etc.) and to make external growth operations (for example within the framework of Public Exchange Offers). The CAC 40 companies still raise several billion euros on Euronext each year.

Majority Shareholders and Minority Shareholders

For the majority shareholders of a company, the liquidity obtained by an IPO certainly makes it possible to easily sell part of their shares without losing the power of control that is theirs, or even to "take out on the stock market" such and such minority shareholder, but the independence of their previous management will never be the same.

Regularly published on a mandatory basis, financial parameters (activity growth rate, earnings per share, dividend per share, etc.) will now influence the strategy implemented since the value of the company (and of its securities made public) will now be judged on these criteria.

Finally, an IPO and the regular financial communication that follows necessarily go through a specialized financial institution and are very expensive. If the Microsoft company was able to raise funds which it would never have been able to benefit from without its IPO in 1986, the Swedish company Ikea has always preferred to stay away from all stock markets, while leading for 40 years an international investment policy.