Companies have to lose something when they get the fund and other benefits come from going public. There are several disadvantages that companies can suffer. First of all, getting listed on a stock market is not done easily and simply. For a company to trade its shares on the stock market, it is mandatory to follow the requirements of the Securities Exchange Act of 1934 and other regulations monitored by the Securities Exchange Commission (SEC). The primary requirements of the Securities Exchange Act 1934 include disclosure of the periodic financial report that includes a company's revenue, cash flow, and assets. Financial disclosure serves to protect investors from being defrauded by the company. However, this could threaten the company as the disclosed information may be beneficial to competitors. Competitors can use the information to gain more profits or plan an acquisition. Furthermore, this may constitute a detriment to new companies as they may not have a complete financial report required by statute. Therefore, trading in the stock market can be more difficult than in a private operation. All information should be made public and should not remain secret. In addition to the disadvantages of disclosure, trading on a public stock market may cost more than trading privately for a company. Due to the requirements of the Securities Exchange Act 1934 and the Sarbanes-Oxley Act 2002 (SOX), a company that wishes to operate in a stock market must essentially spend a lot on financial reporting documents, audit committees, investor relations departments and accounting supervisory committees. Additionally, SOX requires the publicly traded company to have an independent audit committee to prevent fraud like the one that occurred with Enron. These le... halves of paper ......extors and customers will become unsure of the company's financial position, which will then lead it to face further losses. Being a publicly traded company, the owner and manager will have to change their decision-making trend from benefiting the company to benefiting the investors. Works Cited http://www.qwoter.com/college/Trading-Basics/why_do_companies_issue_stock.html http://www .businesslink.gov.uk/bdotg/action/detail?itemId=1074401437&type=RESOURCEShttp://www.zeromillion .com/financial-services/stocks-trading-advantages-and-disadvantages-by-tim-wreford.htmlhttp:/ /www.onlineforextrading.com/learn-trading/forex-vs-stockshttp://www.sec.gov /about/laws.shtml#secexact1934http://www.enotes.com/major-acts-congress/securities-exchange -acthttp://www.economist.com/node/3984019?story_id=3984019http://ezinearticles.com /?An-Overview-Of-Sarbanes-Oxley-Act&id=855861