'Facebook - Becoming a Public Company'

'In February of 2012, the worlds largest player in social media, Facebook, unconquerable to apply to aim a manally spated fraternity. Facebook had said that they were looking to raise close to $5 zillion dollars in hopes to finance projects that would ultimately maturate their community (Luckerson 1). With 845 gazillion active users, little(a) debt, and records of strong one-year profits; Facebook was evaluated to vocation at $38/sh ar, estimating the companys worth at approximately $104 gazillion dollars. (Luckerson 1) The initial offering determine had been record ambit for a impertinently unexclusive company. The IPO sparked a ton of bet with investors that saying the potential profit, and Facebook cease up ski tow $16 zillion dollars in investments. Since bang the armoury mart on whitethorn 18, 2012, Facebook currently trades at $77.70 and is evaluated at close to twice their IPO. (Luckerson 1) Its honest to say that get public has worked verboten well for Facebook financially, merely that isnt always the subject for others. Why do companies look to trade in public, while nearlywhat remain to stay put private? How argon IPOs evaluated? \n\nWhy Did it land for Facebook?\nThere are many advantages to creation a publicly traded company. Shares of a public company are much more liquid than that of a private company because of the well-worn exchange. (Block 475) The inventory exchange makes acquire and selling profligate simple, and easy. This means the public companies erect bump off investors much easier, quicker, and ofttimes at higher(prenominal) stock prices. other advantage is that companies can use stock as an incentive for employees. Using stock incentive plans, publicly traded companies can curl and retain special employees. (Block 475) Although the advantages of becoming a public company are enticing, thither are more or less drawbacks. It might be in some companies best interest to remain private. iodine of the biggest disadvantages is the added workload of universe a publicly traded company. More specifically, old management willing be re...'