Editing Initial public offering (section)

===Disadvantages===
There are several disadvantages to completing an initial public offering:

* Significant legal, accounting, and marketing costs, many of which are ongoing
* Requirement to disclose financial and business information
* Meaningful time, effort, and attention required of management
* Risk that required funding will not be raised
* Public dissemination of information that may be useful to competitors, suppliers and customers.
* Loss of control and stronger [[principal–agent problem|agency problems]] due to new shareholders
* Increased risk of litigation, including private securities class actions and shareholder derivative actions<ref>{{cite journal|last1=Rose Selden|first1=Shannon|last2=Goodman|first2=Mark|title=The Shift in Litigation Risks When U.S. Companies Go Public|url=https://www.transactionadvisors.com/insights/shift-litigation-risks-when-us-companies-go-public|journal=Transaction Advisors|issn=2329-9134|access-date=16 January 2015|archive-date=6 November 2018|archive-url=https://web.archive.org/web/20181106192504/https://www.transactionadvisors.com/insights/shift-litigation-risks-when-us-companies-go-public|url-status=dead}}</ref>