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Wrong. You can stay private with >500 shareholders, you just have reporting requirements matching those of a public company.
by accountoftheday 14y ago
Wrong. You can stay private with >500 shareholders, you just have reporting requirements matching those of a public company.
- snowwrestler 14y agoIt's the reporting requirements that create the risk of stifling bureaucracy. By listing on NASDAQ, Facebook at least gains some capital in return for this reporting.
- SatvikBeri 14y agoYou are correct. I should have been more precise: once a company has >500 shareholders, they the same reporting requirements as a public company. Since reporting is one of the biggest disadvantages to going public, this means that companies with >500 shareholders are very strongly incentivized to go public.