What are the benefits of shares to the company after getting listed on stock exchange??


Companies get all the money by selling it’s shares only during its IPO. After , when the company gets listed on the stock exchange, shares are exchanged within the public. So what are the benefits of share to the company after listing on stock exchange??


The primary market is used by issuers for raising fresh capital from the investors by making initial public offers or rights issues or offers for sale of equity or debt; on the other hand the secondary market provides liquidity to these instruments, through trading and settlement on the stock exchanges. An active secondary market promotes the growth of the primary market and capital formation, since the investors in the primary market are assured of a continuous market where they have an option to liquidate their investments.

There’s no such benefit to the issuing company once the stocks list on the Stock Exchange.

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Adding to above reply, listing will enhance value/branding to the company, indirect way of marketing, give easier access to raise funds in future. Also there is general trust that if a company is listed means it is under surveillance from various regulators.( Companies still going rouge is different but I mean a general perception of listing).

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