Chapter 432 Five Major Benefits of Going Public
Upon hearing this, Ye Ran and Lu Yi both laughed out loud, and looked deeply at Telt, asking, "So, will we be heading towards heaven or hell?"
Telt replied matter-of-factly, "You are our most important guests today, of course I hope you go to heaven!"
Lu Yi's smile faded slightly. "We are truly flattered by your kindness. Although this is our first time here, we have done our research thoroughly."
The New York Stock Exchange sees hundreds of billions of dollars flowing in and out every day, and it employs a great many talented stock traders.
And you, Telt, have been the best stock trader on the stock exchange for the past two years. I heard you even got promoted recently?
Telt clapped his hands and laughed, "Thank you for your recognition, but you guys are no ordinary people either! As a huge dark horse that has emerged from the tech market, you keep giving us all sorts of surprises."
Those of us who work in the stock market always like to receive all kinds of information from various sources, because every piece of information can have a significant impact on the stock market.
You guys are the celebrities that all those high-flying stock investors are paying the most attention to lately!
Hearing Telt's words, Lu Yi raised an eyebrow. "Me? I don't have anything that requires your special attention."
Hearing this, Telt laughed even more heartily, "Don't be modest, especially with the recent events that have put you in the spotlight!"
A capable and intelligent person like you is exactly the kind of person we would most like to collaborate with.
I won't beat around the bush. Your YR company is holding its IPO press conference the day after tomorrow, and the New York Stock Exchange is definitely your best choice!
"So, are you interested in partnering with us and listing on our exchange?"
Upon hearing this, Lu Yi smiled gently, "Tell me first what benefits this will bring me."
At this point, Telt's smile faded, and he looked at Lu Yi seriously. "Of course, you are Chinese, so you may not be very clear about our operating mechanism here."
So I will try my best to explain it to you clearly: in the United States, almost all companies choose to list on a stock exchange. Many of the well-known American companies are listed here, such as Boeing, General Electric…”
Hearing him say these things, Lu Yi immediately stopped him, "We already know all of this. You just need to tell us directly what benefits we can get after the IPO."
Upon hearing this, Telt stopped, then got up and began to give examples on the whiteboard in the lounge.
There are five advantages to listing on the stock market.
First, it could expand your financing channels. I think that although your YR company is currently doing very well, shouldn't you be responsible for all the capital investment yourself?
Chen Zheng, standing next to him, nodded. "That's right, it was all funded by our boss, Lu Yi."
Telt gave Lu Yi a thumbs up. "It seems you guys are the kind with plenty of capital. But no matter how much capital you have, there will always be a day when you're short of money, right?"
Ye Ran and Lu Yi didn't speak, but they both recalled the time when they were short of money and had survived by selling things.
Seeing that they remained silent, Telt continued earnestly, "But once you are listed on our stock market, the funds your company receives will primarily come from numerous stock investors, who will then be shareholders, and investors will bear their own profits and losses."
At that time, you won't need to worry about a shortage of funds at all.
At this point, Lu Yi simply nodded calmly, without showing any particular interest.
Seeing their expressions, Telt became curious. This Lu Yi seemed to have a lot of money behind him...
With that in mind, Telt continued, "Second, improve the company's image."
In the United States, companies that have gone public are generally considered to be quite excellent in all aspects, which creates a certain threshold.
Of course, many people believe that being listed or not is one of the criteria for distinguishing between high-quality and low-quality companies.
However, this excludes a few companies that choose not to go public.
Therefore, going public will help improve the company's image and industry standing.
Upon hearing the term "stingy person," Lu Yi and the others laughed.
Terte winked quipped. “That sounds like how you say it in China, right? It’s a new word I just learned recently, and it’s quite interesting.”
"Okay, let me continue. The third benefit is that it facilitates the adjustment of the company's structure."
Once a company goes public, its performance, gross profit, business direction, cash flow, and other information will be publicly available and subject to supervision by multiple relevant departments. If fraud is found, the company may be forced to delist directly from the market.
Therefore, operating in such an open and transparent manner is conducive to the adjustment of the entire company structure.
Fourth, it is conducive to the merger of resources.
This mainly refers to mergers and acquisitions between companies. Mergers and acquisitions between companies occur frequently in the capital market, which further enhances the competitiveness and business capabilities of the acquiring party.
For the acquired company, it can get rid of its original loss-making situation and continue to exist in the capital market.
At the same time, this situation will also attract the attention of many large funds, driving up the company's stock price.
Fifth, achieve wealth appreciation.
For original shareholders, a company going public is a major event.
Because of the high premium on stocks, the wealth of original shareholders often increases dramatically after an IPO, thus realizing wealth appreciation.
At this point, Telter paused. "I just heard you say that all the initial funding was provided by you alone, right?"
Lu Yi shook his head. "No."
Upon hearing this, not only was Terte surprised, but Chen Zheng was also frightened. Only Qingzhu rolled her eyes.
Under Telt's envious gaze, Lu Yi smiled and patted Ye Ran's shoulder, "All the funds came from my wife. If we're talking about original shareholders, she's the largest shareholder in our company!"
Upon hearing this, Telt's attitude towards Ye Ran instantly became much warmer...
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