Facebook Research

Background: Facebook Inc., operator of the social networking web come in www.facebook.com, is rumoured to issue shares to the public afterwards 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 abide cover its daylight to day operational costs and in time make huge reach each year. Recently, it has surpassed many competitors embarrass MySpace(2008). How? The answer is that FB has been payd mainly by investors and venture capital firm. other way of financing for FB is shares which allow be issued to the public as a listing on stock market posterior this year. FB might be considered as an IPO because its release shares to the public initially to go through up extra capital from investors. In the primary market, only the transmission edge owner issues and sells securities to investors, According to the media, FB founder, Mark Zuckerberg, owns 24% of the conf ederation, business partners such(prenominal) as Accel Partners and Digital Sky Technologies both own 10% and the peace of mind is mainly owned by employees in the company. These percentages link to the bar of shares owned by FBs bosses, workers, investors. Its provable that the trade of FBs shares has been running for the purpose of floating the company and organism listed on the stock market which also cognise as secondary market. In secondary market, all monetary contracts seat be traded publicly from stockholders to others.

|Listing company match to cloistered offering | |Advantages (benefits): ! | |-raise funds and capital by merchandising shares to finance business | |costs and growth | |-attract more(prenominal) investors, more likely to be possessed of 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 affluent essay, order it on our website: OrderCustomPaper.com

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