After a company has over 500 shareholders (I think it’s 500, but it may be 250), it is obligated to disclose all of its financial information publicly (as per the sec). At this point, there are only advantages to going public, such as adding liquidity for all of those 500+ shareholders.
a private co. is not likely to have that many shareholders unless they gave stock to numerous employees.
Surely you can think of many more reasons for why an owner would raise money (public or private offering), rather than "they cannot borrow". Off the top of my head: -Raise money to fund new investments, R&D, acquisition -Valuations are high (buy low / sell high) -Take chips off the table -Take risk off the table (pass risk to new investors) -Borrowing may have to be paid back in a shorter time frame than owner would like -Raise liquidity for taxes or other big personal purchase -Diversification (sell equity, buy real estate or other asset) Hopefully you understand this before you trade stocks, at least.
"Take chip off the table...Take risk off the table...Diversification If you have 50% of your assets tied up in the company, something major could happen. A major lawsuit could wipe out the company; they were clubbing baby seals, selling infant formula in China, creating shoes that caused health problems!! You want to take your money and put it elsewhere if you ever have to file bankruptcy. You move the assets all around. 30 years ago I got sued...Thought I would lose everything. I bought 4 burial plots!! The family burial plot is exempt in bankruptcy court...Plan ahead. Suit dropped, sold plots...
Understanding stocks is completely unnecessary for successfully trading stocks. Surely, you understand this. Just like you don't have to understand cryptos to profitably trading them.
Not really, my point still stands. One doesn't need to know how an engine works to be able to drive the car.
There are many benefits of registering a company in the stock exchange. For example, if the company is in debt, they can reduce it by offering the company to the people. They can also reduce any risks if the company goes broke.