initial public offerings

Why Do Entrepreneurs Opt for IPOs?

Entrepreneurs opt for IPOs for several reasons:
- Capital Raising: IPOs provide access to a large pool of capital, which can be used for scaling operations, research and development, and other business activities.
- Liquidity: Shares become more liquid, providing an exit strategy for early investors and employees holding stock options.
- Market Visibility: Being publicly traded increases the company’s visibility and credibility.
- Employee Incentives: Public shares can be used in employee stock option plans to attract and retain talent.

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