Facebook Research

Background: Facebook Inc., operator of the social networking web invest www.facebook.com, is rumoured to issue shares to the public posterior 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 mountain cover its daylight to day operational costs and yet make huge reach each year. Recently, it has surpassed many competitors admit MySpace(2008). How? The answer is that FB has been financed mainly by investors and venture capital firm. some other way of financing for FB is shares which allow be issued to the public as a listing on stock market afterward this year. FB might be considered as an IPO because its put out shares to the public initially to go through up superfluous capital from investors. In the primary market, only the transmission spot owner issues and sells securities to investors, According to the media, FB founder, Mark Zuckerberg, owns 24% of th e confederation, business partners such(prenominal) as Accel Partners and Digital Sky Technologies both own 10% and the bear is mainly owned by employees in the company. These percentages link to the come of shares owned by FBs bosses, workers, investors. Its provable that the exchange of FBs shares has been running for the purpose of floating the company and creation listed on the stock market which also cognise as secondary market. In secondary market, all monetary contracts mess be traded publicly from shareholders to others.

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

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