Why does facebook uses corporation form of ownership?
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01-28-2013, 10:51 AM
Post: #1
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Why does facebook uses corporation form of ownership?
i am doing my business presentation about facebook, so a fine answer is much needed. help me. i suck at business lol
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01-28-2013, 10:59 AM
Post: #2
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what else should it be?
do you think it should be a trade union? or do you mean why did facebook chose to list at the stock Ads |
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01-28-2013, 10:59 AM
Post: #3
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Usually companies list themselves on the stock market to accumulate new investment selling shares on the stock market will allow Facebook to accumulate new cash, so that they can further invest.
However I do not see why Facebook as done this, many say that it has already reached its peak consumption and so opening it up to the stock market will almost indefinitely reduce the company. At its pack people will be less willing to buy shares as they may think they will see little/no return on their investment. As a result share prices will fall and the companies value will fall with it. Personally I think that the owner of Facebook realised this and so he opened it up to the stock market so that he could take away some ownership from him. Why else would he do it? |
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