Facebook - Becoming a Public Company

In February of 2012, the worlds largest player in complaisant media, Facebook, decided to apply to fuck off a commonly traded confederation. Facebook had enunciate that they were looking to raise nearly $5 billion dollars in hopes to finance projects that would ultimately twist their company (Luckerson 1). With 845 million nimble workoutrs, little debt, and records of strong yearbook profits; Facebook was evaluated to trade at $38/sh be, estimating the companys worth at approximately $104 billion dollars. (Luckerson 1) The initial universal offering price had been record displace for a newly public company. The IPO sparked a net ton of interest with investors that saw the authority profit, and Facebook ended up facts of life $16 billion dollars in investments. Since hitting the lineage grocery on May 18, 2012, Facebook currently trades at $77.70 and is evaluated at close to twice their IPO. (Luckerson 1) Its safe to say that comely public has worked go forth wel l for Facebook financially, but that isnt forever and a day the case for others. why do companies look to trade publicly, slice some remain to detain private? How be IPOs evaluated? \n\nWhy Did it Work for Facebook?\nThere are many advantages to being a publicly traded company. Shares of a public company are frequently more liquid than that of a private company because of the stock exchange. (Block 475) The stock exchange makes get and selling stock simple, and easy. This federal agency the public companies can mop up investors much easier, quicker, and often at higher stock prices. some other advantage is that companies can use stock as an bonus for employees. Using stock fillip plans, publicly traded companies can curl and retain exceptional employees. (Block 475) Although the advantages of becoming a public company are enticing, there are some drawbacks. It might be in some companies top hat interest to remain private. wholeness of the biggest disadvantages is the ad ded workload of being a publicly traded company. More specifically, precedential management will be re...