Question

Do you or friends of your use the social networking site Facebook? Do you know businesses that use Facebook? How does an entrepreneur make all of our lives better? • The term IPO, or initial public offering, was also mentioned in the story. What would be a good reason to offer stock of Facebook to the public? What are the disadvantages to Facebook's CEO, Mark Zuckerberg, to offering shares of Facebook to the public?

Answer 1

Yes, we use social media sites. Today we are living in the digital Era. In today's world different social media platforms are become important part of an individuals life. So if the consumer are engaging in social media then why don't business. At a time business start using social media platforms to launch their products, offers, advertising, and many more. With the time now a days social media platforms are the biggest face of any company, brand and it is quite easy to use social media sites for business.

Facebook is one of the biggest platform for social interaction when we see this from business prospects we find an easy way to find targetted customer and customer find easily the information for the market and products. It is two way. It basically called Internet of things I.e. IOT. Even this generate huge employment in the world. There are N numbers of businesses using Facebook for brand promotion and marketing and information to the customer.

There are several benefits by which our lives become more easy :

* Easy availablity of products information

*Comparison among products become handy.

* Different offers, discount, new launch are easy available.

*Time saving

*Energy saving and many other benefits.

Facebook has opened Its IPO's in open paltform for public. IPO are intial public offering offered by a business to buy first time issued shares from the market. The primary reason for Facebook to going public is because of an antiquated Securities and Exchange Commission rule from 1964 says that any private company with more than 500 "shareholders of record" must adhere to the same financial disclosure requirements that public companies do.

Good reason for IPO public :

* Financial benefits to the company to raise funds.

* Capital can be used for Research and development and pay off debts if any.

*Increase company image in market, kind of brond promotion.

Disadvantages for IPO public :

*Disclosure of information to public.

* IPO's are regulated by govt authority.

*Involvement of additional cost like audit, accounting process change, reporting documents etc.

*Huge cost is involved for IPO's like prospects and different strategies are involved.

These are some advantages and disadvantages Mr. Mark might face during the IPO's.