The listing of a company's shares in a Stock Market is necessary in today's globalized world for many reasons. More extensive:
Raise Capital
Nowadays and according to surveys, seeking funds from all over the world, from various financial units (newly established, mature companies, start-up and others) account 40 to 50 trillion Euros. All these capital requirements deal with ideas, business plans, development and others, with promised returns that start from 6% - 8% and reach up to 100%. Most of them repay 12% to 18%. On the other side,
Financial Engineering
There are many cases where companies are forced either to record losses in parent balance sheets, or not be able to properly evaluate their holdings, thus keeping silent appreciation, which cannot be reflected in their financial statements,
Tax Reasons
The listing of a company’s shares in a Stock Market, even for a very small company, usually followed for tax reasons. More specific, a listed company can be able to:
(a) to transfer the shares from one generation to another at a lower cost than projected in the contractual framework,
Enhance Credibility
Especially for companies that are being activated in the sectors of:
a. retail sales,
b. products for general public,
c. exports,
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More than half of Romanians (57.2 pct) believe that next year their financial situation will stay unchanged, and nearly 44 pct are unhappy with their current finances.
