Which of the following is a benefit of a publicly traded company?

• A. Raise funds by selling stock
• B. Increased regulatory scrutiny
• C. Shareholders are entitled to documents and notifications
• D. Loss of control for company founders/ management

Answer: (A)

Publicly traded status provides access to capital markets, allowing the company to raise funds by selling stock to a broad base of investors. This creates liquidity for existing shareholders and gives the business a powerful source of capital for growth, acquisitions, or paying down debt. It also enables stock-based compensation to attract and retain talent. The other points describe costs or governance realities of going public—more regulatory scrutiny, rights to information for shareholders, or the risk of dilution and loss of control—rather than direct financial benefits.