Facebook - Becoming a Public Company

In February of 2012, the worlds largest player in social media, Facebook, decided to keep back to become a in reality concernd attach to. Facebook had said that they were looking to hike approximately $5 meg dollars in hopes to finance projects that would finally grow their company (Luckerson 1). With 845 one million million million active users, little debt, and phonograph recordings of well annual profits; Facebook was evaluated to flock at $38/shargon, estimating the companys expenditure at approximately $104 one million million dollars. (Luckerson 1) The IPO price had been record setting for a fresh national company. The IPO sparked a ton of interest with investors that see the potential profit, and Facebook ended up raising $16 billion dollars in investments. Since hitting the wrinkle market on may 18, 2012, Facebook currently trades at $77.70 and is evaluated at almost twice their IPO. (Luckerson 1) Its invulnerable to say that becoming public has worked out well for Facebook financially, moreover that isnt always the case for others. why do companies look to trade publicly, while round watch to stay private? How are IPOs evaluated? \n\nWhy Did it Work for Facebook?\n at that place are many advantages to beingness a publicly traded company. Shares of a public company are much more runniness than that of a private company because of the straining replacement. (Block 475) The pains exchange makes buying and selling line of credit simple, and easy. This means the public companies tin plenty reach investors much easier, quicker, and frequently at higher stock prices. Another advantage is that companies foot use stock as an incentive for employees. Using stock incentive plans, publicly traded companies can attract and retain special employees. (Block 475) Although the advantages of becoming a public company are enticing, there are some drawbacks. It big businessman be in some companies best interest to confront private. O ne of the biggest disadvantages is the added workload of being a publicly traded company. much specifically, senior management willing be re...