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To be a listed company is win-win strategy for both company and shareholder. Benefit to Listed company 1.A source of long-term capital Capital market is a valuable source of long-term capital for listed companies without interest coverage and debt burden. A firm may raise funds to finance its working capital and or expansion plans directly ,in order to enhance its competitiveness and more flexibility 2. Financial instruments Apart from issuing and listing common shares, a public company can raise additional capital by issuing and listing other types of securities, such as preferred shares, warrants, debentures and convertible debentures for the sake of an improved flexible financial structure regarding to continual growth of the company. 3. Positive public image Generally, listed firms are thought of financial wealth and having high standards of transparency and information disclosure under mechanism of SEC monitoring . The public profile boosts a company's credibility and good reputation ,increases bargaining power and reflects positively for investors , customers and suppliers on its products and services. Moreover, the dissemination of company information through official SET channels contributes to the firm's marketing through enhanced public acceptance and credibility for strategic business ally adds to a firm's competitiveness which is attracted to local and foreign investment and open up opportunities for business expansion and modernization. 4.Employee morale Another overlooked benefit of being a listed company is the pride and royalty that employees are being part of the organization which is main reflective factor to foster continual growth and achievements of company as well as establish opportunity for employee stock option in order to build entrepreneur spirit. 5.Management accountability and professionalism Investor confidence, reflected to some extent in the level of stock prices, is a function of a firm's standard of operations. The management of a public company must be accountable to its shareholders, who, in turn, play a role in ensuring that the firm operates in an efficient manner. Shareholders benefit from improvements in a company's operational efficiency as well as turn towards management to be more professional. 6.Tax privileges on dividends A listed firm takes privileges for holding shares in other companies incorporated under Thai law, laws governing mutual funds or the Industrial Finance Corporation of Thailand Act. Any dividends received from such firms is tax-exempt, provided the dividend is from stocks or investment units held for at least three months before and after the date of dividend payment. Shareholders’ benefits 1. Increased liquidity To be listed on set/mai generally increase liquidity of a firm securities.Shareholders find more potential buyers more easily ,as their stock are more marketable. The market value of the listed company is easy to determine and its share are acceptable as collateral for loans. 2. Shareholder protection To ensure that the benefits to investors are protected, SET issues rules and regulations governing securities trading and information disclosure. These rules and regulations ensure the transparency, adequacy and promptness of information disclosure and guarantee investors equal access to this information. 3. Capital gain exemption Individual shareholders of listed companies proceed the sale of listed securities are exempt from personal income tax. |
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