Market Volatility Equity valuations are highly sensitive to market conditions. Economic downturns or
Market Volatility
Equity valuations are highly sensitive to market conditions. Economic downturns or unfavorable investor sentiment can significantly reduce the perceived value of a company, affecting its ability to raise future equity.
5. Regulatory and Disclosure Burden
Public companies must comply with stringent regulatory requirements and maintain transparency. These obligations can be resource-intensive and expose sensitive business information.