'Facebook - Becoming a Public Company'

'In February of 2012, the worlds largest musician in sociable media, Facebook, decided to put on to become a universely traded fellowship. Facebook had give tongue to that they were grimaceing to brace somewhat $5 billion dollars in hopes to finance projects that would lastly grow their come with (Luckerson 1). With 845 million combat-ready examplers, little debt, and dispositions of muscular annual earnings; Facebook was evaluated to trade at $38/sh ar, estimating the companys value at approximately $104 billion dollars. (Luckerson 1) The initial worldly concern offering price had been record setting for a newly ordinary company. The IPO sparked a ton of wager with investors that saw the authorization profit, and Facebook ended up raising $16 billion dollars in investments. Since hitting the ocellus 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 rate that beseeming public has worked out salutary for Facebook financially, but that isnt invariably the case for others. wherefore do companies look to trade publicly, go some bide to stay one-on-one? How ar IPOs evaluated?\n\nwhy Did it Work for Facebook?\n at that place are many a(prenominal) favors to being a publicly traded company. Shares of a public company are oftentimes more suave than that of a private company because of the assembly line transposition. (Block 475) The note exchange makes buying and merchandising stock simple, and easy. This authority the public companies understructure reach investors much(prenominal) easier, quicker, and often at higher stock prices. Another advantage is that companies stooge use stock as an fillip for employees. employ stock incentive plans, publicly traded companies can attract and uphold exceptional employees. (Block 475) Although the advantages of becoming a public company are enticing, there are some drawbacks. It readiness be in some com panies trump out interest to run private. One of the biggest disadvantages is the added workload of being a publicly traded company. more(prenominal) specifically, senior perplexity will be re... '