Question

In: Accounting

Does Facebook and Twitter invest in any financial securities? How do they classify the different types...

Does Facebook and Twitter invest in any financial securities? How do they classify the different types of investments? Please be detailed and provide sources.

Solutions

Expert Solution

I could not find much about twitter but definitely will guide you about Facebook.

Facebook does invest in financial securities and classify them as Marketable securities. The latest available annual report pertains to 2016, whereby it held Maturity securities worth $20,546 millions.

As can be seen, the marketable securities comprise of US Government securities, US Govt Agency Securities and Corporate Debt securities. They are classified as marketable because of their nature being highly liquid.

In my opinion, companies like Facebook has lot of cash on their balance sheet and they need that cash to acquire various businesses. They do not indulge in heavy investing in financial securities, they invest the surplus funds in government securities which are secured, safe and easily convertible to cash and at the same time earn a nominal income.

Source: Facebook Annual Report 2016

Hope this suffice


Related Solutions

Should employers ask for and review the Facebook pages or Twitter accounts of applicants? Do you...
Should employers ask for and review the Facebook pages or Twitter accounts of applicants? Do you know of any cases where employees ended up being penalized for using Facebook at work, or posting things on their Facebook page? Shouldn't people be able to speak freely about their jobs, co-workers and bosses on their Facebook pages outside of work? Do you know of any companies that have policies regarding Facebook usage? Is it ethical to play Facebook games at work?
What are the different types of derivative securities and how are they used in the market?
What are the different types of derivative securities and how are they used in the market?
Classify the different types of medications used in the treatment of mental disorders and explain how...
Classify the different types of medications used in the treatment of mental disorders and explain how they each work to reduce symptoms. List and evaluate Kübler-Ross's five stages of grief (denial, anger, bargaining, depression, acceptance). Define and describe the stages of prenatal development and some factors that can harm a developing fetus during pregnancy. Explain the DSM is and how it defines a psychological disorder. Describe the characteristic symptoms of schizophrenia and describe potential causes of schizophrenia.
With an overall assessment of how different stakeholders in the firm (Facebook) view the financial performance...
With an overall assessment of how different stakeholders in the firm (Facebook) view the financial performance of the company. Ultimately, would a smart investor consider investing in Facebook based on its financial performance, or are there stronger options within the industry?
What types of Treasury securities are available? How does the use of Treasury securities vary between...
What types of Treasury securities are available? How does the use of Treasury securities vary between large banks and small banks?
What are the different types of decisions and how does the decision-making process work? How do...
What are the different types of decisions and how does the decision-making process work? How do information systems support the activities of managers and management decision making? *List and describe the different levels of decision making and decisions making constituencies’ in organizations. Explain how their decision making requirements differ. *Distinguish between an unstructured, semi structured, and structured decision. *List and describe the stages in decision making. *Compare the descriptions of managerial behavior in the classical and behavioral models. *Identify the...
How does the Privacy Act relate to Facebook and especially any data that may be public...
How does the Privacy Act relate to Facebook and especially any data that may be public or semi-public, like Linkedin. For example, there is a company (HiQ I think) that scrapes Linkedin profiles to predict if someone is likely to leave their job.
How could a college or university more effectively use Facebook and Twitter to promote its brand...
How could a college or university more effectively use Facebook and Twitter to promote its brand to potential students?
A consonsultant wishes to invest up to a total of $25000 in two types of securities,...
A consonsultant wishes to invest up to a total of $25000 in two types of securities, one that yields 10% per year and another than yields 8% per year. They believe that the amount invested in the first security should be at most one third of the amount invested in the second security. What investment program should the consultant pursue in order to maximize income? (Use constraint inqualities with objective function)
How do you classify flood? How does flood affect human beings?
How do you classify flood? How does flood affect human beings?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT