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Demarcus Thompson
12 August, 10:25
Pro and cons of public listed company
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Devan Andrews
12 August, 10:35
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There are both pros and cons of owning a publicly listed company.
Some of the pros are that it is easy to become an owner. All you need to do is buy stock and you are instantly an owner. It is also easy for this company to raise capital because if they need more cash to expand the business they just need to sell more stock.
Some of the cons to a publicly listed company is that you have very little to no control over the company. Shareholders vote on a Board of Directors, who then controls the company. Another con is that the profits are taxed twice. First, the company pays taxes on their profits, and then the shareholders pay taxes on the dividends that they receive.
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