Disadvantages of Going Public

Advantages Disadvantages Preparation Requirements Form 15c2-11

Less Confidentiality - Complete financial disclosure is required to become publicly held.

More Public Reporting - Reporting expense is greater because of the need for full disclosure.

Ownership Dilution - Owners give up some equity percent.

Greater Time Involvement - Management must devote additional time to public company operations.

Greater Liability - More company visibility brings a higher level of liability exposure.

Increased Expense - Higher costs of regulatory compliance for audit, legal and investor relations.

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