Advantages of placing shares on the stock Market

Companies can access the capital market when they are institutionalized and have good corporate governance, whether medium or large. The transcendence of the placement of shares shows the potential of a market for medium-sized companies, for example, to finance their growth.

Some of the advantages of entering the stock market are:

– The company may access financing at lower rates compared to the banking sector.

– It is a way of financing productive projects without increasing indebtedness.

– The image of the company is improved before the investors, because once they issue shares they will have to present periodic information to the market.

– It improves the image before the market because they have to adapt to the principles of good corporate governance (if they were SMEs).

– When trading on the stock exchange, cash flow and operating flow is great because there is always purchase and sale of shares.

– You can raise the price to generate profit and when it is down, more shares are sold, most of the people take advantage that they go down a bit and it is also a good way to sponsor.

– Placing on the stock market already gives a specific value to the company.

– Eventually you can use the shares as currency, to buy another organization for example.

The issuance of shares becomes necessary in the collection of resources, of money; Being transparent and having dynamic activities on the stock market, lowering the cost of debt, becoming a company to the public gives a guarantee, gives confidence to the banking sector, low costs, the operation becomes more agile and the institution’s capabilities to grow they become important.

The scenario for an SME to enter the stock market is a little different from that of large companies, when making these types of decisions, there are some costs of restructuring, risk classification and costs to be able to be ordered before going to market. In the end it may be more expensive for an SME, it may not be so attractive because also the monthly information before the regulator, would force a structure to be made within the SME that is responsible for preparing this type of document

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