Which of the following happens when a company goes public

Question

Mathematics

Alyvia Ritter

14 December, 07:21

Which of the following happens when a company goes public

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Lorelei Rasmussen · Answer 1

When a company goes public it begins selling shares of stock in a public stock market. This means that i t asks for money from investors and gives them a share of the company in return of their investment.

The result is: The company gets the money and the investor gets a share in the company's ownership. The investor gets a share and he becomes the owner of the company but he owns only a part corresponding to the number of shares he buys.