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benefits of enlisting on stock market

Fadiyah Sameh
Fadiyah Sameh
Posted: 2015-05-01

Due to the evolution in modern economics, it has become easier for the companies to ignore the geographical boundaries and extend their operations to all corners of the world. But considering such a wide playing field, it is important for the businesses to raise finance to support these endeavors. There are several methods through which companies can raise finance for themselves but many of them are difficult to secure and may cause a substantial increase in the gearing of the company. One of the cheapest and most easily available source of funding available for any company is Stock Market. Stock market provides the companies and businesses an easy way to create organic growth that would be able to benefit the benefit the business in the longer run. Stock markets enable the business to cash on their reputation, better profit a company earns higher funding they can get. The price of the share on the stock market reflect the confidence of the investors in the company. Therefore those companies with good track record can cash their goodwill and reputation easily through stock market. In addition to easy funding, the best practices requirements of the stock market also enable the company to glean a competitive edge over their competitors by instilling flexibility and clarity in their operation and documentation. Registering on stock exchange also enables the companies to become an improved career prospect, attracting better employees and talent in the Human resource department. A listed company is subjected to higher scrutiny and increased legal requirements, which improves the overall reliability and accuracy of their records. This increased reliability can be cashed through the funding institutions such as banks and lenders in form of cheaper loans and lower interest rates. Overall it is a good option for the companies to elect to enlist on the stock market to raise finance or help their businesses grow to a larger scale if they have good management and ability to continue to perform well in the long run.

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