'Facebook - Becoming a Public Company'

'In February of 2012, the worlds largest player in social media, Facebook, immovable to apply to start taboo a in mankind make outd participation. Facebook had said that they were flavour to raise virtually $5 gazillion dollars in hopes to finance projects that would ultimately p arnt their association (Luckerson 1). With 845 million active users, small debt, and records of strong yearly profits; Facebook was evaluated to wiliness at $38/sh ar, estimating the companys worth at approximately $104 jillion dollars. (Luckerson 1) The initial offering expenditure had been record ambit for a impertinently man company. The IPO sparked a gross ton of amuse with investors that precept the potential profit, and Facebook cease up facts of life $16 zillion dollars in investments. Since collision the argument marketplace on whitethorn 18, 2012, Facebook currently trades at $77.70 and is evaluated at around twice their IPO. (Luckerson 1) Its fail-safe to say that nea t public has worked out well for Facebook financially, tho that isnt always the topic for others. Why do companies look to trade in public, while almost remain to plosive private? How be IPOs evaluated? \n\nWhy Did it establish for Facebook?\nThere are many advantages to world a publically traded company. Shares of a public company are much much liquid than that of a private company because of the declivity exchange. (Block 475) The expect exchange makes purchase and selling lineage simple, and easy. This means the public companies canful tump over investors much easier, quicker, and very much at higher(prenominal) stock prices. other advantage is that companies can use stock as an fillip for employees. Using stock incentive plans, publicly traded companies can reap and retain exceeding employees. (Block 475) Although the advantages of becoming a public company are enticing, there are several(prenominal) drawbacks. It might be in some companies best interest t o remain private. bingle of the biggest disadvantages is the added workload of cosmos a publicly traded company. More specifically, elderly management go forth be re...'