You can raise money for your business from the public, or from private investors, by going public. When your corporation goes public it sells shares of its stock either on the open stock market or privately to investors through a stockbroker. Your first-time offer to the public is called an initial public offering (IPO).
Money you raise through a public (or private) offering is an investment in your corporation. Hence, the money your company receives never has to be repaid. You can use this money to:
Buy a building to house your business.
Buy production machinery for your business.
Buy computers, copiers, telephone systems, autos, trucks, aircraft, and ships for your business.
Buy whatever else is needed to conduct a profitable, growing business.
You can also use the money you raise for many other business activities, such as:
Pay salaries for yourself and your staff.
Pay rent, light, and heat for your office and/or factory.
Pay your travel expenses, and those of your staff.
Pay any other legitimate business expense associated with earning a profit from your business.
The key idea to keep in mind about going public is that the money you raise for your corporation is for business uses of any kind. In getting this money you widen the ownership of your corporation because the outside investors become part owners. You can retain control of your corporation by limiting the number of shares of stock you sell to the public.