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what is floating on the stock market? - Printable Version

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what is floating on the stock market? - conor - 10-15-2012 08:30 PM

I've heard all the talk about facebook being floated on the stock market next year and being valued at 100 billion dollars, just wondering what does it mean for a company to be floated on the stock market?


- Peter - 10-15-2012 08:38 PM

A number of shares will be issued by Facebook, and issued through what is called an 'I.P.O' Initial Public Offering.
The amount of shares and the opening value will be decided by others, but, a prospectus will be issued for the public to subscribe to shares in the company.
Once the company has been established as a Public Company, the shares will be able to be traded on the stock Market.
The company will have to behave under a different set of rules, as far as some internal changes go in the field of reporting to the public.