Capital Markets

• Stock exchanges are mediums where investors can purchase equity (shares) in a company and participate in the fortunes (or failures) of the company.
  
  

Need for Money

• Almost all companies require start-up capital or money to expand business. Offering shares to the public in an initial public offering or secondary offering can fund these activities.
  
  

Registration Process

• The registration of shares for issuance to the public is a lengthy one. Companies must meet stringent standards initially and on an ongoing basis.
  
  

Regulatory Accountability

• Maintaining compliance with government and industrty regulatory rules assures investors that certain requirements have been met. This can bolster the reputation of the company in the view of the potential shareholder.
  
  

Benefits

• In addition to attracting a larger base of potential investors, companies can increase their business image and notoriety and attract better employees.