initial public offering

What are the Risks of an IPO?

Despite the benefits, there are also risks associated with going public:
Market Volatility: The stock price can be highly volatile, influenced by market conditions and investor sentiment.
Regulatory Scrutiny: Public companies are subject to stringent regulatory requirements and must comply with various reporting and governance standards.
Cost: The IPO process can be expensive, involving underwriting fees, legal fees, and ongoing compliance costs.
Loss of Control: Existing owners may lose control over the company as new shareholders gain voting rights and influence.

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