Facebook
Table of Content
Executive Summary…………………………………………………………PG3
Introduction………………………………………………………………PG 4
Recent history of the company………………………………………….PG 5
Explanation of Source of Finance………………………………………PG6-7
Firms sources of finance/Capital Structure of the firm………………...PG 7-8
Reason for floatation………………………………………………..….PG9
Implications of the floatation for the firm……………………………...PG8-10
Performance of the firms shares since floatation…………………….…PG11
Future prospects for the firm……………………………………………PG12
Recommendations as to future financing…………………………………..
Conclusion…………………………………………………………………….
References……………………………………………………………………..
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EXECUTIVE SUMMARY
A firm that has been floating on the stock exchange has been selected and evaluated and the firm I have chosen was Facebook. In my report I have included the recent history of Facebook as to how the social networking site started and the developments from the introduction until recently.
I furthermore went on to evaluate the source of finance with a brief explanation as to what source of finance is and the different type of sources available to business i.e. Short term , medium term and long term. This explains the type of finance business need starting from day to day transactions to long term purchasing of assets and investments.
After my understanding of what sources of finance are, I done some research on Facebooks source of finance and came to a conclusion that the firms sources of finance is long term source of finance as they earn money through shares(IPO).
The reason for Facebooks floatation was simply because at the time they decide to go public the firm was already valued as one of the top companies around, however even though the firm was highly valued there was still negative stories about the firm.
Facebook continues to grow and to try and keep the 200 million users entertain there are now talks of a Facebook phone that is due to be released this year.�
INTRODUCTION
I am required to select a
Executive Summary…………………………………………………………PG3
Introduction………………………………………………………………PG 4
Recent history of the company………………………………………….PG 5
Explanation of Source of Finance………………………………………PG6-7
Firms sources of finance/Capital Structure of the firm………………...PG 7-8
Reason for floatation………………………………………………..….PG9
Implications of the floatation for the firm……………………………...PG8-10
Performance of the firms shares since floatation…………………….…PG11
Future prospects for the firm……………………………………………PG12
Recommendations as to future financing…………………………………..
Conclusion…………………………………………………………………….
References……………………………………………………………………..
�
EXECUTIVE SUMMARY
A firm that has been floating on the stock exchange has been selected and evaluated and the firm I have chosen was Facebook. In my report I have included the recent history of Facebook as to how the social networking site started and the developments from the introduction until recently.
I furthermore went on to evaluate the source of finance with a brief explanation as to what source of finance is and the different type of sources available to business i.e. Short term , medium term and long term. This explains the type of finance business need starting from day to day transactions to long term purchasing of assets and investments.
After my understanding of what sources of finance are, I done some research on Facebooks source of finance and came to a conclusion that the firms sources of finance is long term source of finance as they earn money through shares(IPO).
The reason for Facebooks floatation was simply because at the time they decide to go public the firm was already valued as one of the top companies around, however even though the firm was highly valued there was still negative stories about the firm.
Facebook continues to grow and to try and keep the 200 million users entertain there are now talks of a Facebook phone that is due to be released this year.�
INTRODUCTION
I am required to select a