Why do companies list on the ASX?
- Thread starter mini696
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Trembling Hand
Can be found on the bid
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To start an endless game of pass the parcel.
Or exit strategy for founders,
Or raise funds for growth etc.
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Easy way to raise funds...
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I thought the question was more ...why do they list on the asx as opposed to other xchanges?
aaronphetamine
E for Electro
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Excellent Question Mini696
One main reason is to raise funds to expand the business. When you raise equity there is no need to repay the amount, whereas raising debt needs to be repaid.
Another reason is that to list on the ASX is to shift ownership from possibly one person to a group of people who can sell their holdings to other people. Equity holders demand that the company elects a board of directors who elects a CEO to run the company. This allows the company to become perpetual, where as your small plumbing business down the road will close down when the owner retires.
One main reason is to raise funds to expand the business. When you raise equity there is no need to repay the amount, whereas raising debt needs to be repaid.
Another reason is that to list on the ASX is to shift ownership from possibly one person to a group of people who can sell their holdings to other people. Equity holders demand that the company elects a board of directors who elects a CEO to run the company. This allows the company to become perpetual, where as your small plumbing business down the road will close down when the owner retires.
Sorry for the confusion Matty. The question was just a general "Why do they go public/whats in it for them"?
