Welcome News for Small Businesses

Publicly traded companies typically receive clearly established benefits that include the ability to:

* raise capital quickly and more easily;

* use stock to acquire other businesses and assets (mergers and acquisitions);

* provide employee stock options, as an incentive and/or compensation;

* create wealth and liquidity for investors;

* obtain loans from financial institutions using their stock as collateral;

* gain prestige and respect;

* reduce the need for expensive venture capital and bank financing; and

* formalize estate planning.

In addition, companies that go public typically see higher valuations, meaning that the market value of a public company is, on average, substantially higher than the same private company. This increases the investors