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May 26, 2012 at 12:41 comment added JTP - Apologise to Monica The 2.7B were there, and IPO transferred ownership of shares floated.
May 26, 2012 at 5:36 comment added Joe.E @JoeTaxpayer : Your answer says that there are 2.7B facebook shares, 2B of which are owned by the original investors. But it doesn't say how many new shares were issued for the IPO? Was there originally 2.7B shares and the IPO was simply a transfer in ownership or was there 700M new shares issued? Or is it somewhere in between?
May 24, 2012 at 22:32 comment added JTP - Apologise to Monica I mean this in a nice way, "have you been reading all the replies here?" An IPO is how the VCs and other investors take their profit by going public. The money definitely did not go to Facebook's coffers.
May 24, 2012 at 22:17 comment added Joe.E @JoeTaxpayer : Really? well maybe I do have a misconception of what an IPO is. I thought that the company would issue a bunch of new shares, sell it at a price, and then the company could use the sale of those shares to expand their business. So is that wrong? Cause what's the point of Facebook issuing an IPO if it didn't gain any capital from it?
May 24, 2012 at 17:52 comment added JTP - Apologise to Monica @Joe.E - The original investors/shareholders would have gotten the money. Your words imply to me that the $28B or so raised at the IPO went into Facebook's checking account. That's not the case.
May 24, 2012 at 17:23 comment added Joe.E @JoeTaxpayer : Well in that case, facebook would've gotten more capital for the shares that they did sell.
May 24, 2012 at 13:03 comment added Dilip Sarwate A down vote: I suppose someone on Facebook did not "Like" my answer. :-)
May 24, 2012 at 3:56 comment added JTP - Apologise to Monica Not sure what you mean. The shares floated were the same percent of shares outstanding regardless of the price.
May 24, 2012 at 2:34 comment added Joe.E @JoeTaxpayer - isn't the higher the price, the less ownership the original owners have to give up or the more money they rise. either way, it's good for facebook
May 23, 2012 at 18:42 comment added JTP - Apologise to Monica "a company wants to sell the stock being offered at the IPO at the highest price possible" -anthropomorphizing of the company aside, what is the impact to the bottom line of the IPO price? Isn't FB balance sheet the same, $30 or $300?
May 23, 2012 at 16:26 history edited Dilip Sarwate CC BY-SA 3.0
added some material
May 23, 2012 at 14:43 history answered Dilip Sarwate CC BY-SA 3.0