Bridger PenningtonFund Launch & Investment Expert

Did You Know You Can IPO a Small Company?

31 Jan 2023 · 1 min

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Small companies with just hundreds of thousands in sales can go public on pink sheets or penny-stock exchanges instead of the NYSE. You get the same benefits: selling shares to investors, stock compensation for employees, and a liquid market to trade them. The reputation is rough, but legitimate companies do it.

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Did you know that you can IPO your company even when you're really small? Most of the time we see these big headline IPOs in the New York Stock Exchange or NASDAQ, but regular business owners like me and you can actually IPO our companies when only we have maybe a couple hundred thousand dollars of sales. This happens on what's called the pink sheets or in penny stocks. Now, it's usually a lower tier of stock market, but you get all the same benefits of being a public company. Outside parties can come buy your shares. You can issue shares and stocks to your employees very easily, and you have a market to buy and sell those shares. Now, pink sheets usually gets a bad rap, but there are still legitimate companies on pink sheets and could be an option for you to scale your company in a certain direction.