Facebook’s much anticipated public stock offering has gotten a lot of public exposure. The company, which has over 800 million active users worldwide, is expected to have one of the largest stock offerings of all time.
With an initial public offering of $5 billion and an expected market valuation of up to $100 billion, there is no question why the company is drawing so much attention. Facebook going public will likely be the biggest stock market event of the year.
The company is, for the first time, offering the public a piece of the action, but only 5 to 7 percent of shares will be available to public investors. The company is looking to create an initial stock shortage so that the price will be driven up by demand once public trading begins.
Corey Rubin, a sophomore business major, at the University of Maryland, explained that you won’t be able to buy in until second exchange but those that do are likely to see a lot of money.
“Facebook stock is going to make people a whole lot of money,” said Rubin.
There have been mixed responses surrounding the company’s decision. Facebook will have a major effect on the market, but at this point, whether the stock offering will live up to the hype or fall short is all a speculation.
Many comparisons are being drawn between Facebook and other big name companies like Google and even the Ford Motor Company. However, in the last year, other internet companies, such as Groupon, have seen mixed levels of success, making Facebook’s long-term success uncertain.
Sarah Polus, a sophomore journalism major, at the University of Maryland, gave her opinion about the future success of Facebook.
“I do believe that making things accessible to the public is a good idea. I personally think that people could make some decent money because of all the advertising on Facebook. A lot of the places I buy clothes from I found out about via Facebook,” said Polus.
Regardless of whether or not you think it’s a great idea, the public trading of Facebook is sure to be one for the record books. $5 billion dollars for an initial public offering is no small deal.