InvestED: The Rule #1 Investing Podcast
442- Sketchy Going Public
Nov 1, 2023
Explore the reasons why companies choose to go public, the requirements for listing a company on stock exchanges, and the challenges and risks faced by early-stage companies. Learn about microcap and megacap stocks, raising capital for new businesses, and the importance of meeting stock exchange listing standards.
39:38
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Going public on small exchanges allows smaller companies to gain visibility and access capital, but they may face scrutiny and doubts from investors and the public.
- Investing in early stage companies on small exchanges requires thorough research, assessing business models, growth prospects, and reputation to identify potential opportunities.
Deep dives
Reasons for Companies to Go Public on Small Exchanges
Companies may choose to go public on small exchanges, such as the pink sheets, when they are looking to raise money and cannot secure funding from venture capitalists or traditional sources. Going public allows them to attract investors from around the world and access capital to run their businesses. While listing on major stock exchanges requires costly and time-consuming processes, small exchanges offer an opportunity for smaller companies to gain visibility and potentially find success. However, these companies may face scrutiny and questions about their financials, reputation, and stock volatility.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
