As reported by the World Bank, there are 150 million enterprises globally, but only 600,000 are publicly traded — in total, this is less than 0.5% of all the shares globally.
There is a reason that so few corporations trade their stocks, which is the massive cost of such a procedure. Making an initial public offering on a stock market to allow investors to sell your shares is a must. The cost of going public varies by nation and is determined on a case-by-case basis. Annual compliance cost excluded, a modest IPO in the United States costs $7.3 million, according to a PwC study.
Asset tokenization is a solution that will help solve the nuance of trading the stocks via creating the so-called liquidity pool — a smart contract-locked group of funds. In our newest article, “How asset tokenization brings liquidity to equity crowdfunding”, on the Stobox blog, find out more about the liquidity pool and how to create it by tokenizing your shares. You will also get an insight into the legal side of this process and learn about potential mousetraps.