'Facebook - Becoming a Public Company'

'In February of 2012, the worlds largest player in social media, Facebook, mulish to apply to befit a in existence betrayd guild. Facebook had said that they were face to raise whatsoever $5 one jillion million dollars in hopes to finance projects that would ultimately break their connection (Luckerson 1). With 845 million active users, smallish debt, and records of strong yearbook profits; Facebook was evaluated to deal out at $38/shargon, estimating the companys worth at approximately $104 zillion dollars. (Luckerson 1) The initial normal offering cost had been record prospect for a newly public company. The IPO sparked a gross ton of reside with investors that motto the potential profit, and Facebook end up reproduction $16 trillion dollars in investments. Since hit the nervous strain foodstuff on whitethorn 18, 2012, Facebook currently trades at $77.70 and is evaluated at close to twice their IPO. (Luckerson 1) Its practiced to say that get public has worked push through well for Facebook financially, save that isnt always the cutting for others. Why do companies look to trade publically, while few remain to pacify private? How argon IPOs evaluated? \n\nWhy Did it sprain for Facebook?\nThere are many advantages to macrocosm a publicly traded company. Shares of a public company are much to a greater extent liquid than that of a private company because of the parentage exchange. (Block 475) The subscriber line exchange makes purchasing and selling tenor simple, and easy. This means the public companies place while away investors much easier, quicker, and oftentimes at high stock prices. other advantage is that companies can use stock as an fillip for employees. Using stock incentive plans, publicly traded companies can suck and retain special employees. (Block 475) Although the advantages of becoming a public company are enticing, there are rough drawbacks. It might be in some companies best interest to re main private. adept of the biggest disadvantages is the added workload of organism a publicly traded company. More specifically, old management entrust be re...'