Question

1) assess the role of Chief Executive Officer of Facebook in relationship to the performance of the stock within the first year of the initial public offering. 2) Suggesting what the person in that role may have done differently to positively influence the performance of the stock and value to investors. 3) Provide support for your suggestions.

Answer 1

the role of the CEO is to keep the comany on the right track that is to follow all the right track. follow all the compliances. submit all the required documents to the department. there can be a lack of history or information for new-to-market securities. They may nothave the historical performance or data, or other important details publicly traded securities are required to offer. A company may disclose a fair amount of information, but it can still be challenging to predict how the company will perform after an IPO.

The role of the Chief Executive Officer, in this case, holds a majority of voting power by making a dual-class stock structure. In other words, he can focus on the long-term withouthaving to worry about investors firing him after a couple of bad quarters. Zuckerberg wrote,”if you have control of the company then it is very difficult for investors to fire you. This means youdon't need to worry about losing your job over a couple of bad quarters or controversial short-term decisions, and that makes it easier for you to make the decisions you think are correct as well.” (Weinberger, 2015) A person in that role may have done many things differently, but in this equation Zuckerberg is not only the founder but the CEO. He is maintaining for long run in a company he has a desire for succeeding. This is not about the bottom line to him but about the creation of a product that will be comparable to the television as a form of communication one day. But on the other side of the coin are the investors and they having an entirely different vision however it may be short term success, called the bottom line.