The raised funds are permanent, with no maturity date and no pressure to repay the principal; The amount of one-time financing is large; The restrictions on the use of funds are relatively loose; Improve the visibility of enterprises and bring them a good reputation; It is conducive to helping enterprises to establish a standardized modern enterprise system. Especially for high-tech enterprises with great potential but high risks, issuing shares on GEM is an effective way to accelerate the development of enterprises.

In essence, listing financing in the capital market means that the owner of the enterprise sells some acceptable shares in exchange for the development funds urgently needed by the enterprise in the current period, and relies on the short-term blood transfusion in the capital market to promote the rapid growth of the cake of the enterprise.

In the long run, financing is the means of enterprises rather than the ultimate goal. Through the possession of effective capital, financing points to the shaping of the competitive advantage of the industry or transformation industry selected by the enterprise at this stage, and further points to the maximization of enterprise profits and the ultimate return of shareholder value.

Extended data

It is wise to sell part of your enterprise to a listed company (generally, the listed company needs to achieve a controlling position), or exchange some cash, or buy shares of some listed companies. There are still many financing channels for listed companies, such as issuing new shares, or issuing new shares in a targeted way, or lending to commercial banks with the company's assets as collateral, or using the capital advantage of major shareholders to lend to major shareholders.

Baidu encyclopedia-financing listing

Baidu encyclopedia-listing financing