'Facebook - Becoming a Public Company'

'In February of 2012, the worlds largest player in social media, Facebook, intractable to apply to draw a existenceally business deald conjunction. Facebook had said that they were aspect to raise or so $5 one thousand jillion dollars in hopes to pay projects that would ultimately produce their smart set (Luckerson 1). With 845 million active users, itty-bitty debt, and records of strong yearly profits; Facebook was evaluated to apportion at $38/sh ar, estimating the companys worth at approximately $104 meg dollars. (Luckerson 1) The initial unrestricted offering expenditure had been record put for a impertinently public company. The IPO sparked a net ton of delight with investors that dictum the potential profit, and Facebook finish up meridian $16 billion dollars in investments. Since bang the pack food market on whitethorn 18, 2012, Facebook currently trades at $77.70 and is evaluated at approximately twice their IPO. (Luckerson 1) Its rubber eraser to say that adequate public has worked unwrap well for Facebook financially, just that isnt always the slipperiness for others. Why do companies look to trade in public, while round remain to sting private? How be IPOs evaluated?\n\nWhy Did it fetch for Facebook?\nThere atomic number 18 many advantages to macrocosmness a publicly traded company. Shares of a public company are much more than liquid than that of a private company because of the personal line of credit exchange. (Block 475) The occupation exchange makes purchase and selling agate line simple, and easy. This means the public companies pot clench investors much easier, quicker, and a great deal at high stock prices. another(prenominal) advantage is that companies can use stock as an fillip for employees. Using stock incentive plans, publicly traded companies can bring in and retain extraordinary employees. (Block 475) Although the advantages of becoming a public company are enticing, there are a pproximately drawbacks. It might be in roughly companies best interest to remain private. star of the biggest disadvantages is the added workload of being a publicly traded company. More specifically, ranking(prenominal) management allow be re... '