Background: Facebook Inc., operator of the social networking web situation www.facebook.com, is rumoured to issue shares to the public afterward 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 muckle cover its daylight to day operational costs and soothe make huge reach each year. Recently, it has surpassed many competitors implicate MySpace(2008). How? The answer is that FB has been financed 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 afterward this year. FB might be considered as an IPO because its yield shares to the public initially to go through up supererogatory capital from investors. In the primary market, only the transmission derivation 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 difference is mainly owned by employees in the company. These percentages link to the aggregate of shares owned by FBs bosses, workers, investors. Its provable that the cut-rate sale of FBs shares has been running for the purpose of floating the company and be listed on the stock market which also cognise as secondary market. In secondary market, all monetary contracts toilet be traded publicly from stockholders to others. |Listing company match to clandestine offering | |Advantages (benefits): | |-raise funds and capital by merchandising shares to finance business | |costs and growth | |-attract more(prenominal) investors, more likely to check 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 blanket(a) essay, order it on our website: OrderCustomPaper.com
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