The listing or listing on the stock market, as many people call it, is the process of making a transition from a private organization to a publicly owned entity in which all or some shares of the company can be traded on the stock exchange. The ability of the company’s shares to be traded on the stock market is critical to an organization’s decision to list the company.

Basically, the stock market brings together the providers of capital and the organizations that require capital, in a single market. The stock exchange takes on this simple but effective role in many countries and as such acts as a hub at the center of the economy of many countries. Providers of capital realize a return on investment (ROI) through capital growth and dividends, increasing the overall wealth of the country. Likewise, the organizations in which the capital providers invest offer and provide employment, thus promoting the economic development of the company. These are just two benefits of having a company listed on the stock exchange, but on a more personal note, there are 8 reasons why you should list your company on the stock exchange. Read carefully and find out what these 8 reasons are:

o Capital growth

A public listing offers opportunities for both the investor and the publicly traded company. The publicly traded company finds a great opportunity to increase its principal capital for organic market growth and acquisition financing. On the other hand, investors who invest in the publicly traded company can easily grow their savings through dividends and stock price fluctuations.

o Elevation of the corporate profile

The public listing generally raises the public profile of the organization with its clients, investors, suppliers and the media. Listed companies are typically part of analyst reporting and are typically included in the index.

o Improvement in the valuation of the company

Generating an independent valuation is possible when a company is listed on the Stock Exchange.

o Institutional Investment

It is easier for an organization to attract institutional investors or other companies who wish to invest in other companies. This simply means availability of both expertise and capital.

o Trading platform

Many stock companies offer an ideal trading platform for company stocks. These companies also provide their shareholders with a great opportunity to realize the value of their shares, which can eventually help the company expand its shareholder base.

o Alignment of management / employee interests

The compensation process for executives, directors and employees of the company with shares is simplified, facilitating and making more flexible the alignment of the interests of the company’s employees with the goals and objectives of the organization.

o Peace of mind for suppliers and customers

Organizations listed on the Stock Exchange generally find improvements in their business and financial strength.

o Exit strategy for investors

The public listing provides the founders and investors of the company with a mechanism to easily exit their investments.