Facebook - Becoming a Public Company

In February of 2012, the worlds largest pretender in social media, Facebook, unyielding to apply to become a usualally traded companion. Facebook had said that they were aspect to raise just about $5 billion dollars in hopes to finance projects that would ultimately grow their go with (Luckerson 1). With 845 million active users, teeny debt, and records of strong annual win; Facebook was evaluated to trade at $38/sh are, estimating the companys worth at approximately $104 billion dollars. (Luckerson 1) The initial offering set had been record setting for a newly public company. The IPO sparked a ton of gratify with investors that saw the potential profit, and Facebook cease up raising $16 billion dollars in investments. Since impinging the telephone line market on May 18, 2012, Facebook currently trades at $77.70 and is evaluated at almost in two ways their IPO. (Luckerson 1) Its safe to say that fit public has worked out emolumentously for Facebook financially, bu t that isnt always the fountain for others. Why do companies ensure to trade in public, while close to remain to stay snobby? How are IPOs evaluated?\n\nWhy Did it oeuvre for Facebook?\nThere are many an(prenominal) advantages to being a in public traded company. Shares of a public company are a great deal more(prenominal) liquid than that of a snobby company because of the seam exchange. (Block 475) The stock exchange makes buying and marketing stock simple, and easy. This means the public companies can reach investors much easier, quicker, and often at high stock prices. Another advantage is that companies can use stock as an incentive for employees. using stock incentive plans, publicly traded companies can attract and stay exceptional employees. (Block 475) Although the advantages of becoming a public company are enticing, there are rough drawbacks. It might be in some companies best please to remain private. One of the biggest disadvantages is the added work load of being a publicly traded company. More specifically, senior care will be re...