What are the disadvantages for a company that goes public?

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1149756

2026-04-13 20:21

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There are several disadvantages as well as advantages to public incorporation. For example, a business run by stockholders may not adapt as quickly to changing ideas and circumstances. The employees will experience some loss of creative and intellectual control. There will be more government regulations to follow and paperwork to provide. The pressures to maintain profits (shareholder value) may increase.

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