Frequently Asked Questions
1. What does “going public” mean? Going public is a process in which a privately owned business lists its shares for trading on a recognized public stock exchange enabling owners to offer for sale all or part of their shareholdings to purchasers in a regulated trading environment.
2. Can any company go public? Generally the answer is yes however many markets have varying degrees of requirements to be listed.
3. What are the minimum requirements to be listed on the Frankfurt Stock Exchange? For approval to be listed on the Open market a company must make application and include:
- a business plan
- 2 years of unaudited financial statements
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certification from an attorney or accountant that the company has € 250,000 in paid in capital
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articles of incorporation
- list of officers and directors
- confirmation by CEO on company letterhead of a minimum of 30 shareholders
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completed exposé
4. Why become a public company? Being public on the Frankfurt Stock Exchange provides easier access to capital, liquidity for investors and shareholders, employee incentives by issuing shares or an employee stock option plan and a new currency for future acquisitions.
5. Why the Frankfurt Stock Exchange? Once you determine that being public is advantageous for your company we recommend Frankfurt for the following reasons:
- It is a major international stock exchange being the third largest in the world
- It is extremely cost effective making it affordable for most companies to get listed
- Costly Audited Financial Statements are not required
- The annual costs to remain listed on the Open Market is € 10,000.00 or less that includes the Sponsoring Broker Fees
- Regulations are very relaxed with no quarterly or annual reporting requirements
- The process to be listed is relatively fast and is usually 4-6 weeks
6. How do I access sources for new Capital? We will develop a marketing strategy that will insure access to new capital sources and we expect positive results within 30 days from the first day of public trading. CBD Financial Group will assist you every step of the way.