These are the most common form of legal organization for really large businesses. They have all the advantages of a private company plus the right to advertise their shares for sale and have them quoted in the stock exchange. They can raise very large sums of public issues of shares.
This flexibility of buying and selling encourages the public to purchase the shares in the first instance and invest in businesses.
Separate legal identity
Ease of buying and selling shares for shareholders
Access to capital sources due to the ability to issue a prospectus to the public and to offer shares for sale.
Cost of business consultants and financial advisers
Share prices fluctuate
Legal requirements concerning disclosure of information to shareholders and the public
Risk of takeover
Directors influenced by the short term objectives of major investors
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