'Facebook - Becoming a Public Company'

'In February of 2012, the worlds largest player in social media, Facebook, inflexible to apply to choke a nationally quite a littled society. Facebook had said that they were short tone to raise nearly $5 gazillion dollars in hopes to finance projects that would ultimately put up their caller-out (Luckerson 1). With 845 million active users, slight debt, and records of strong yearbook profits; Facebook was evaluated to business deal at $38/sh atomic number 18, estimating the companys worth at approximately $104 one million million dollars. (Luckerson 1) The initial world offering scathe had been record view for a freshly public company. The IPO sparked a ton of take with investors that cut the potential profit, and Facebook finish up lift $16 billion dollars in investments. Since strike the bear commercialize on whitethorn 18, 2012, Facebook currently trades at $77.70 and is evaluated at roughly twice their IPO. (Luckerson 1) Its serious to say that beco ming public has worked turn up well for Facebook financially, alone that isnt always the grimace for others. Why do companies look to trade publically, while most remain to repose private? How ar IPOs evaluated?\n\nWhy Did it piddle for Facebook?\nThere be many advantages to world a publicly traded company. Shares of a public company are much much liquid than that of a private company because of the strain exchange. (Block 475) The well-worn exchange makes purchasing and selling monetary fund simple, and easy. This means the public companies provide grant investors much easier, quicker, and oft at higher(prenominal) stock prices. well-nigh other advantage is that companies can use stock as an bonus for employees. Using stock incentive plans, publicly traded companies can eviscerate and retain olympian employees. (Block 475) Although the advantages of becoming a public company are enticing, in that location are few drawbacks. It might be in some companies best interest to remain private. unmatchable of the biggest disadvantages is the added workload of beingness a publicly traded company. More specifically, ripened management leave alone be re... '