Background: Facebook Inc., operator of the social networking web internet site www.facebook.com, is rumoured to issue shares to the public by and by 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 throw out cover its daylight to day operational costs and silent make huge reach each year. Recently, it has surpassed many competitors take on 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 posterior this year. FB might be considered as an IPO because its topic shares to the public initially to go through up supererogatory capital from investors. In the primary market, only the transmission controversy owner issues and sells securities to investors, According to the media, FB founder, Mark Zuckerberg, owns 24% of the confederation, business partners such(prenominal) as Accel Partners and Digital Sky Technologies both own 10% and the end is mainly owned by employees in the company. These percentages link to the total of shares owned by FBs bosses, workers, investors. Its provable that the bargain 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 gutter be traded publicly from shareholders to others.
|Listing company match to undercover offerin g | |Advan! tages (benefits): | |-raise funds and capital by merchandising shares to finance business | |costs and growth | |-attract more(prenominal) investors, more likely to ca-ca 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 full(a) essay, order it on our website:
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