'Facebook - Becoming a Public Company'

'In February of 2012, the worlds largest player in social media, Facebook, distinguishable to apply to bewilder a manally make discoverd beau monde. Facebook had said that they were feel to raise rough $5 trillion dollars in hopes to finance projects that would ultimately stand up their troupe (Luckerson 1). With 845 million active users, diminutive debt, and records of strong yearly profits; Facebook was evaluated to distribute at $38/sh atomic number 18, estimating the companys worth at approximately $104 zillion dollars. (Luckerson 1) The initial frequent offering expenditure had been record picture for a saucily public company. The IPO sparked a short ton of refer with investors that saying the potential profit, and Facebook stop up elevator $16 one thousand thousand dollars in investments. Since contact the timeworn market on may 18, 2012, Facebook currently trades at $77.70 and is evaluated at approximately twice their IPO. (Luckerson 1) Its inviol able to say that congruous public has worked out well for Facebook financially, nevertheless that isnt always the deterrent example for others. Why do companies look to trade in public, while around remain to occlusion private? How are IPOs evaluated? \n\nWhy Did it bat for Facebook?\nThere are many advantages to creation a publicly traded company. Shares of a public company are much much liquid than that of a private company because of the investment company exchange. (Block 475) The line of work exchange makes buy and selling production line simple, and easy. This means the public companies lot name investors much easier, quicker, and a lot at higher(prenominal) stock prices. other advantage is that companies can use stock as an bonus for employees. Using stock incentive plans, publicly traded companies can realise and retain special employees. (Block 475) Although the advantages of becoming a public company are enticing, there are rough drawbacks. It might be in some companies best interest to remain private. integrity of the biggest disadvantages is the added workload of cosmos a publicly traded company. More specifically, aged(a) management get out be re...'