Drawbacks of IPO’s

Drawbacks of IPO’s:

  1. Company will be required to disclose all the financial information and other business information.
  2. The process of IPO is not very cheap. So, a company will face difficulty which is already in debt.
  3. Risk of failure, if the market doesn’t accept the IPO price.
  4. Loss of power, as stakeholders can alter the decisions via the board of directors.

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