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What is the disadvantage of IPO?

Asked by Anonymous Sep 02, 2026 30 views 1 answers
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Answered Sep 02, 2026

The primary disadvantages of undergoing an initial public offering for a company include massive regulatory compliance costs, stringent quarterly financial transparency requirements, public scrutiny, and potential pressure from public shareholders prioritizing short-term earnings over long-term strategic investments. For investors, disadvantages include extreme price volatility, information asymmetry, and the risk of overpaying during periods of excessive market hype and inflated valuations.

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