The cost of filing reports with various regulatory bodies,the danger of losing control,and the possibility of an inactive market and an attendant low stock price are potential disadvantages of going public.

Regulatory Bodies

These are government agencies or independent institutions that supervise and regulate specific industries or economic activities to ensure compliance with laws and standards.

Inactive Market

A market in which there are few transactions, leading to less liquidity and greater price fluctuations.

Going Public

The process by which a privately held company offers shares of stock to the public for the first time, often through an Initial Public Offering (IPO).