Private Equity Interview Question:

What are the advantages of a public company's securities?

Submitted by: Murtaza

Publicly traded companies are able to raise funds and capital through the sale (in the primary or secondary market) of their securities, whether debt or equity. This is the reason publicly traded corporations are important prior to their existence, it was very difficult to obtain large amounts of capital for private enterprises. The profit on stock or bonds is gained in form of dividend or capital gain to the holders of such securities.
The financial media and analysts will be able to access additional information about the business.
Submitted by: Murtaza