After eight years of being private, Facebook and its 900 million closest friends are going public, this will allow any person to purchase stock of the company. Here comes the head scratching moment, what does Facebook going public mean?
Since the beginning, investors were brought in by invite only. Now that it has reached another stage in its rapidly growing life, Facebook will open its shares to the rest of the world. An initial public offering (IPO) is the first sale of stock by a company to the general public, which is normally used to raise capital so the company can get bigger. Facebook is expected to rise in value from $77 billion to $96 billion. As the company goes public, Facebook’s initial owners will have a chance to get paid out for their risky investment and hard work.
This transition has been long awaited for the eager investors that are ready to start buying one of the most valuable commodities that Facebook offers: personal information. By purchasing stock it will make targeting to audiences for marketers easier.