[dragonwriter]

> What the post is referring does exist, it's called the stock market. It is a set of rules you need to follow before you can allow thousands or millions of shareholders to invest. Committing to the rules and getting the permission to do so is called an IPO.

No, that's all wrong. There are business that seek direct investment -- including specifically from their customers -- without being publicly traded on any exchange; they obviously have to comply with general securities laws, but do not have to deal with anything applicable specifically to publicly-traded companies or particular exchange rule, and obviously don't have an IPO first as they aren't public.

Neither being widely held (having lots of individual shareholders) nor seeking direct equity investment from your customer base requires you to be a publicly traded firm.