Facebook - Becoming a Public Company

In February of 2012, the worlds largest player in social media, Facebook, decided to follow up to become a popularly patronaged friendship. Facebook had said that they were looking to swipe approximately $5 one meg million million dollars in hopes to finance projects that would last grow their company (Luckerson 1). With 845 million active users, little debt, and personalitys of bullnecked annual profits; Facebook was evaluated to mete out at $38/sh be, estimating the companys price at approximately $104 meg dollars. (Luckerson 1) The IPO price had been record setting for a newly open company. The IPO sparked a ton of interest with investors that motto the potential profit, and Facebook ended up raising $16 one thousand million dollars in investments. Since hitting the caudex market on whitethorn 18, 2012, Facebook currently trades at $77.70 and is evaluated at almost twice their IPO. (Luckerson 1) Its inviolable to say that becoming public has worked out well for F acebook financially, moreover that isnt always the case for others. why do companies look to trade publicly, while few go on to stay private? How be IPOs evaluated?\n\nWhy Did it Work for Facebook?\nthither are many advantages to world a publicly traded company. Shares of a public company are much more crystal clear than that of a private company because of the striving alternate. (Block 475) The fund exchange makes buying and selling bear simple, and easy. This means the public companies base reach investors much easier, quicker, and oftentimes at higher stock prices. Another advantage is that companies disregard use stock as an incentive for employees. Using stock incentive plans, publicly traded companies derriere attract and retain majestic employees. (Block 475) Although the advantages of becoming a public company are enticing, thither are some drawbacks. It capability be in some companies best interest to hang in private. One of the biggest disadvantages is th e added workload of being a publicly traded company. much specifically, senior management pass on be re...