sample _ key points only - Key points to FACEBOOK IPO...

This preview shows page 1 out of 1 page.

Key points to FACEBOOK IPO article: Summary: (I am skipping this). -There is high information asymmetry between investors and issuers at the time of the initial public offering. Facebook’s future performance cannot be perfectly predicted because there is a lot of uncertainty regarding its ability to maintain current users and find new revenue streams. This uncertainty creates a demand for information relating to Facebook’s financial standing. However, as a private firm, Facebook was not obligated to release any accounting information to the general public before it decided to go IPO. This scarcity of information about the issuer forces investors to rely heavily on the prospectus, which itself may contain only one to three years of financial statements. This is an example of adverse selection. Facebook’s management has substantial amount of information advantage over the general public and its investors. In this case, investors should be rationally suspicious. However, this article mentioned that most
Image of page 1
  • Winter '10
  • JennyZhang
  • FACEBOOK IPO article

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern