GonnaBeBig has been in business for five years, and has sales approaching $50 million annually. They have decided that they want to go public. They are currently a subchapter S corporation. Their stock is owned by a total of 53 investors.

Why do we refer to them as a private company currently? What does it mean to go public?

What legal form does their company need to be to go public? Why?

What are some reasons why they would want to go public?

i.What advantages does being public hold for their investors?

ii.What advantages does being public offer to the company?