'Facebook - Becoming a Public Company'

'In February of 2012, the worlds largest instrumentalist in genial media, Facebook, decided to apply to become a familiarly traded fellowship. Facebook had give tongue to that they were insureing to rise around $5 billion dollars in hopes to finance projects that would in the long run grow their bon ton (Luckerson 1). With 845 million sprightly examplers, little debt, and bring downs of self-colored annual pay; Facebook was evaluated to trade at $38/shargon, estimating the companys deserving at approximately $104 billion dollars. (Luckerson 1) The initial worldly concern offering price had been record setting for a newly open company. The IPO sparked a ton of kindle with investors that saw the dominance profit, and Facebook ended up raising $16 billion dollars in investments. Since hitting the commonplace market on May 18, 2012, Facebook before long trades at $77.70 and is evaluated at almost twice their IPO. (Luckerson 1) Its safe to pronounce that decorou s public has worked out surface for Facebook financially, but that isnt unendingly the case for others. why do companies look to trade publicly, temporary hookup some delay to stay snobbish? How atomic number 18 IPOs evaluated? \n\nwhy Did it Work for Facebook?\n there are numerous utilitys to being a publicly traded company. Shares of a public company are untold more liquidness than that of a hush-hush company because of the communication channel shift. (Block 475) The ancestry exchange makes buying and selling stock simple, and easy. This promoter the public companies fanny reach investors much easier, quicker, and often at higher stock prices. Another advantage is that companies usher out use stock as an fillip for employees. development stock incentive plans, publicly traded companies can attract and accommodate exceptional employees. (Block 475) Although the advantages of becoming a public company are enticing, there are some drawbacks. It king be in some c ompanies high hat interest to endure private. One of the biggest disadvantages is the added work load of being a publicly traded company. more(prenominal) specifically, senior forethought will be re...'