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Furthermore, in some countries as Italy, debt (bank loans) is the main form of financing. Indeed, even after the start-up, there are many successful entrepreneurs (e.g. IKEA, Domino’s Pizza and Levi Strauss) who continue to operate successfully as private, unlisted companies.
Anyway, if a company prospered, it would need additional equitiy capital. To raise it, a firm usually “go public”; it means that it starts selling a portion of itself to a large number of diversified investors. What occurs in this case is named IPO (Initial Public Offering): a security is sold to the general public for the first time, and thanks to this, usually, a liquid market will develop...
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