In the era of free economy and democracy, stock market provided an effective linkage between large pool of investors and entrepreneurs. Investors on their free will want to take risk and invest directly with the project and like to posses share of ownership and profit.
Borrowing and their prescheduled compulsory debt servicing could be avoided if company is listed.
The management of a public company must be accountable to their shareholders, which in turn play a role in ensuring that the company operates in an efficient manner. Shareholders will benefit from the enhancement of the company's operational efficiency.
Once listed access to additional long-term capital is often easier. You can issue right shares or capitalize profit by issuing bonus share.
If your company is listed it pays less tax. At the current rate, listed companies pay at 7.50% less corporate tax than those who are not listed.
Your company's name in the newspapers and other media will also help marketing of company product and service. It has been found that shareholders are often loyal to their own company's brand.
Listing on the Exchange generally increases the liquidity of the listed securities. Entrepreneurs may love to develop one project successfully , run it in a transparent way and then change into cash it when needed for the sake of developing another one.
Being listed in the stock exchange raises the prestige of a company immeasurably. A listed company presents a positive public image. This image plays an important role in boosting the company's credibility.
Being a listed company can help attract foreign investment in the firm, opening up opportunities for business expansion and modernization.