Benefits of Listing on Stock Exchange


Benefits of Listing on Stock Exchange

Listing is the process of formally taking the admission of a company to the trading platform of the exchange. Companies listed on the stock exchange (NSE or BSE) have got a lot of benefits. There are some of the requirements need to fulfil by a company to get listed in the exchange.

Listed Companies take out an (IPO) Initial Public Offering through which they can sell their shares to public. The share price decided on the basis of supply and demand of that share in the market.

Benefits of Listing Company

Listing of a company in the stock exchange is the significant journey of the company in terms of its growth and development. Listing enables a company to raise its capital while strengthening its structure and reputation. It provides liquidity to investors and ensure effective monitoring of compliance of the issuer and trading of the securities in the open interest.

Here are the top benefits of listing of a company in stock option
1. Boosted Profile- Most significant advantage of listing is that company got a better profile so that they are more visible and recognizable when compared to their privately-help counterparts. Besides, it also aids in drawing the attention of media and public.

2. Access to capital for growth- Most companies reach a level wherein additional capital is required to be infused for fund of the company’s growth. By going public is thereby a method of overcoming these constraints. By listing on stock exchange, the company increases shareholder base and enhance credibility.

3. Liquidity- The listing of the company reinforces liquidity by giving an opportunity to shareholders to realize their investment value. It allows shareholders to transact in the shares of the company, sharing risks as well as benefitting from any increment in the organizational value.

4. Increase in Employee Morale- Going public increase the visibility and improves the public perception of the organization, thereby helps to increase the employee value and morale.

5. Transparency and Efficiency- Listing in stock exchange brings transparency and efficiency in the overall operations of the company. The board and management of the listed company has accountability towards its shareholders. Such companies enjoy more success than any other companies.

6. Higher Returns- A company’s main objective is to get higher return on investment. Stock has the higher return on any venture assets. Therefore, it is one of the significant benefits of listing.

7. Increased Exposure- Listed companies offer more exposure than the others to the investors. Hence investors are more interested in listed companies. The company grow faster when the more investors invest more capital.

To get more details about listing of the company, click here

Also read: What are Debentures

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