It costs money to create share buying. Every public company must find buyers for their shareholders' stock. You must have buyer when your shareholder sells. If your company fails to find buyers, your share price will collapse.

To maintain your present share price, your float will trade four times annually. Your float is stock held by your public shareholders. If your company's float is one million shares, you must expect to find four million shares of buying in next year. If you keep your present shareholders, you'll cut your stock support costs by 100%. If your insiders can't sell and thus add to company's float, you'll reduce your future stock support costs by fourfold for every unsold insider share.

The annual supply and demand for your company's stock isn't constant in Market. You get a favorable write-up. Demand for your stock temporarily jumps up. A major shareholder liquidates their position. The supply of your stock temporarily increases in Market. You need to level supply/demand curve. You can often do it by working with your shareholders. Your goal should be to maintain a sustainable share price. Your share price should trade within a narrow range.

There's a silver-lining about bad news. If your shareholders hear it from you, you'll gain credibility. If they hear it from you, it won't sound as bad as hearing it from their broker, a newspaper article, or in Shareholders' Annual Report. Budget money to spread bad news. It's a sound long term strategy.

About eight years ago, an Eastern University published an IPO study. The study reviewed one hundred attempts to do an IPO. It compared S-18 filings. The S-18 was earlier version of SB-2 filing. The study concluded that less than half companies that started IPO process were funded. It showed average costs for IPO process to be about US$750,000.

I'm interested in a current IPO study. I doubt that SB-2 form has cut costs. While there are more IPOs today, interest in doing IPOs is greater. So far, I haven't found a recent study.