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When going public SME’s/unquoted companies may loose control (aka:Dilution of control).
Why is that happenning? I thought that we could issue shares (say 1 million $1 shares) but we need $400,000. So i keep 60% of shares for free for myself and Raise capital of $400,000. Share capital $1mln and im having 60% of shares (>51% control package) Please correct me sir.
How companies like facebook and other start-ups have saved the control then? i thought its for free…How start-ups are getting listed then?
(Please dont close the Topic.)
If they do what you suggest then of course they keep control.
However if they want to raise a lot of money and they decide to raise it by issuing shares, then they might end up losing control because they might need to issue so many shares.
I am closing the topic because I have answered the question (we can’t give free private tuition – we just answer whatever questions are asked 🙂 )
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