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Essay / A Case Study of Paid-In Capital: Paid-In Capital
Offering stock and stock options as part of compensation can enable a small business to attract and retain better management encourage you to perform well. . Employees who become co-owners through a stock ownership plan may be motivated by sharing in the company's success. Finally, an IPO allows for a public valuation of a small company, so it will be easier for the company to pursue mergers and acquisitions because it can offer stock rather than shares.