Sign In
Not register? Register Now!
You are here: HomeEssayBusiness & Marketing
9 pages/≈2475 words
3 Sources
Business & Marketing
English (U.S.)
MS Word
Total cost:
$ 38.88

The Facebook IPO Hype (Essay Sample)


The assignment Was based on four documents provided;
 A case study ‘The Facebook IPO hype: a rude social awakening.’
 Facebook IPO prospectus
 An Excel file containing the daily share price of Facebook for the first five years (FB share price)
 Facebook’s Annual Report 2016
The writer was to Read the documents and the IPO book (available as an e-Book on
Blackboard) And answer the provided questions. External references/material from credible sources (such as the financial press and journal articles) was also allowed.


The Facebook IPO Hype
The Facebook IPO Hype
* (a) Benefits and Drawbacks of Going Public
There are many benefits of going public for startup companies, including getting a channel for getting funds to finance operations and expansion. The primary source of capital for companies is seeking financial loans from banks and other lending firms. However, there is always a loan limit beyond which the organization cannot access fiscal loans. Therefore, it can only access additional finances by selling its assets. Therefore, companies that focus on growing their assets will go public to raise additional funds through the sale of stock instead of selling their assets (Khurshed, 2019). However, going public also has shortcomings, such as a drop in the company value. Going public exposes, the company to various factors in the stock market, and the share prices can shrink quickly to reduce the company's worth. 
(b) Factors that Motivated Facebook to Go Public
Many factors led Facebook to go public. First, the company sought a $100 million credit line that would enable it to secure data centers since its number of users increased significantly at the time. It needed new data centers to help store the influx of data (De Maeseneire & Divakaruni, 2012). However, Facebook could not secure the credit line from its primary bank, 

Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:

Other Topics:

  • Strategic Analysis of Netflix Company
    Description: Netflix has emerged to be the leading provider of subscription video-on-demand services. The company has managed to change the way in which media content circulates. It’s a story of how a globally-known video portal interacts with existing audiences, institutions, and different markets and how this affects...
    3 pages/≈825 words| 3 Sources | APA | Business & Marketing | Essay |
  • Oligopolistic Markets: Airline and Automobile Industries
    Description: An oligopoly denotes a market configuration where a limited number of companies rule and contend for control. Industries like this present considerable challenges for new entrants, with firms holding considerable influence in the marketplace and having to factor in the activities of their rivals while...
    1 page/≈275 words| 1 Source | APA | Business & Marketing | Essay |
  • Business Case Process for Fashion Trends
    Description: A business case is a project management file that seeks to justify the rewards against the cost of undertaking a project and the reason why the project should be conducted. As an appointed team leader in planning a fundraising event for Fashion Trends, there is a need to identify the best event option to...
    2 pages/≈550 words| 6 Sources | APA | Business & Marketing | Essay |
Need a Custom Essay Written?
First time 15% Discount!