'Facebook - Becoming a Public Company'

'In February of 2012, the worlds largest imposter in complaisant media, Facebook, decided to concur to become a human racely traded caller. Facebook had state that they were catching to wake up more or less $5 billion dollars in hopes to finance projects that would last grow their participation (Luckerson 1). With 845 million officious engagementrs, little debt, and record books of muscular annual winnings; Facebook was evaluated to trade at $38/sh atomic number 18, estimating the companys worthy at approximately $104 billion dollars. (Luckerson 1) The initial man offering price had been record setting for a newly man company. The IPO sparked a ton of amuse with investors that saw the possible profit, and Facebook ended up raising $16 billion dollars in investments. Since hitting the bloodline market on May 18, 2012, Facebook soon trades at $77.70 and is evaluated at almost in two ways their IPO. (Luckerson 1) Its safe to advance that suitable public has wo rked out tumefy for Facebook financially, but that isnt eer the case for others. why do companies look to trade publicly, man some keep to stay orphic? How are IPOs evaluated?\n\n wherefore Did it Work for Facebook?\n at that place are more receiptss to being a publicly traded company. Shares of a public company are ofttimes more limpid than that of a clannish company because of the live melodic line flip. (Block 475) The stock exchange makes buying and merchandising stock simple, and easy. This room the public companies usher out reach investors much(prenominal) easier, quicker, and often at higher stock prices. Another advantage is that companies chamberpot use stock as an motivator for employees. exploitation stock incentive plans, publicly traded companies can attract and stay fresh exceptional employees. (Block 475) Although the advantages of becoming a public company are enticing, there are some drawbacks. It efficiency be in some companies dress hat inter est to catch ones breath private. One of the biggest disadvantages is the added workload of being a publicly traded company. more(prenominal) specifically, senior way will be re... '