Company shares and shareholders

Issuing shares in your company on a stock market can provide the following benefits:

• new finance
• an exit for founding investors who want to realise their investment
• a mechanism for investors to trade shares
• a market valuation for the company
• an incentive for staff using shares or share options
• an acquisition currency in the form of shares
• a way to raise your business' profile

There are also some potential drawbacks to issuing shares:

• diluted ownership
• reduced control of your business
• loss of privacy
• administration costs
• you may have to offer a monthly or quarterly dividend to investors
• you may require the services of a solicitor or accountant

Find more information on business angels and venture capital.