1, financing companies can get more sources of funds:

Financing companies are a good way to attract funds. The company puts some of its shares on the market, sets a certain price, and allows these shares to be traded in the market. The money from the sale of shares can be used for further development.

2. Financing companies have more investors:

A stock represents a part of a company. For example, a company has 6,543.8+0,000 shares, the chairman holds 5,654.38+0,000 shares, and the remaining 490,000 shares are sold in the market, which is equivalent to selling 49% of the company's shares to the public. Of course, the chairman can also sell more shares to the public, but there are certain risks. If the malicious acquirer holds more shares than the chairman, the ownership of the company will change. Generally speaking, listing has both advantages and disadvantages.

Before the company appeared, the sole proprietorship enterprise was the most typical enterprise form; All kinds of partnership organizations coexist with sole proprietorship enterprises, and the most typical partnership organization at that time was family management group. Before the company came into being, the partnership organization did not obtain the legal person status, but some other legal persons appeared. This situation can be traced back to ancient Rome. In ancient Rome, the state, local autonomous organizations, monasteries and other religious groups, nursing homes and other charitable organizations all obtained legal person status. In the Middle Ages, some trade groups obtained legal personality, especially those engaged in overseas trade.

Introduction to other advantages of financing companies:

1, the boss of the company sells a part of the company to the public, which is equivalent to asking the public to take risks with himself. For example, 100% holds, 100 loses, 50% holds, and only 50% loses.

2. Increase the liquidity of shareholders' assets. Escape from the control of the bank without relying on bank loans.

3. Improve the transparency of the company and increase public confidence in the company.

4. Improve the company's popularity. If a certain share is transferred to the manager, the contradiction between the manager and the company holder can be alleviated, that is, the agency problem.