Facebook - Becoming a Public Company

In February of 2012, the worlds largest player in sociable media, Facebook, decided to apply to incur a commonly traded party. Facebook had utter that they were looking to raise nigh $5 billion dollars in hopes to finance projects that would ultimately recrudesce their company (Luckerson 1). With 845 million energetic pulmonary tuberculosisrs, little debt, and records of strong yearbook profits; Facebook was evaluated to trade at $38/sh ar, estimating the companys worth at approximately $104 billion dollars. (Luckerson 1) The initial offering price had been record displace for a newly exoteric company. The IPO sparked a ton of interest with investors that saw the effectiveness profit, and Facebook ended up pinnacle $16 billion dollars in investments. Since hitting the occupation securities industry on May 18, 2012, Facebook presently trades at $77.70 and is evaluated at nearly twice their IPO. (Luckerson 1) Its safe to feel egress that neat public has worked out well for Facebook financially, but that isnt ever the case for others. why do companies look to trade publicly, trance some remain to amaze private? How ar IPOs evaluated?\n\nWhy Did it Work for Facebook?\nThere are many advantages to being a publicly traded company. Shares of a public company are much more liquid than that of a private company because of the stock exchange. (Block 475) The stock exchange makes buy and selling stock simple, and easy. This subject matter the public companies can tense investors much easier, quicker, and often at higher stock prices. some other advantage is that companies can use stock as an fillip for employees. Using stock fillip plans, publicly traded companies can deplume and retain exceptional employees. (Block 475) Although the advantages of becoming a public company are enticing, there are some drawbacks. It might be in some companies beat interest to remain private. superstar of the biggest disadvantages is the added workload of being a publicly traded company. More specifically, elderberry bush management will be re...