The process of becoming a public company is long and complex.
First of all, the company should reach a certain size. When it happens the owners issuing shares on the stock exchange. This process is called an IPO.
The first step before the IPO is to assemble an independent board by founders.
Then, the board has to appoint auditors who will check accounts for accuracy and an investment bank which will advise on selling shares.
The flotation will bring a huge amount of new capital into the business. Most of this will be reinvested, some will go to the original founders.
Running a public company isn’t easy. The management team will face many constraints and difficulties.
Company’s shares have their price which is fluctuating. The may be in the red or in the black. Those who have the shares of the company are shareholders.
To sum up, even if the process of the IPO is long and complicated, it’s a good way to expand.