Facebook Research

Background: Facebook Inc., operator of the social networking web identify www.facebook.com, is rumoured to issue shares to the public after(prenominal) on this year. Assignment work Facebook (FB) is a social networking site that provides free admission fee for hundred millions of active users. Yet, FB slew cover its daylight to day operational costs and subdued make huge reach each year. Recently, it has surpassed many competitors implicate MySpace(2008). How? The answer is that FB has been payd mainly by investors and venture capital firm. another(prenominal) way of financing for FB is shares which allow be issued to the public as a listing on stock market later this year. FB might be considered as an IPO because its yield shares to the public initially to go through up spare capital from investors. In the primary market, only the transmission contention owner issues and sells securities to investors, According to the media, FB founder, Mark Zuckerberg, ow ns 24% of the confederation, business partners such(prenominal) as Accel Partners and Digital Sky Technologies both own 10% and the stay is mainly owned by employees in the company. These percentages link to the add up of shares owned by FBs bosses, workers, investors. Its provable that the sales agreement of FBs shares has been running for the purpose of floating the company and universe listed on the stock market which also cognise as secondary market. In secondary market, all monetary contracts gage be traded publicly from stockholders to others.

|Listing company match to personal offering | |Advantages (benefits): |! |-raise funds and capital by merchandising shares to finance business | |costs and growth | |-attract more(prenominal) investors, more likely to prolong professional | |investments | |-create secondary market for sale of shares which lead to wider | |shareholder pool. The origin holders of the companys...If you want to get a integral essay, order it on our website: OrderEssay.net

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