I need help please with my project Project Description: A firm’s source of finan
ID: 362681 • Letter: I
Question
I need help please with my project
Project Description: A firm’s source of financing using an initial public offering of stock.
Using the two article links below, examine and analyze the IPO of Line and Facebook.
Instructions: After reading both articles discussing the IPO for each tech company, answer the following questions. (3-4 sentences per a response, done in a numbered list)
Line – IPO in 2016
https://www.cnbc.com/2016/07/14/japanese-messaging-app-line-opens-at-42-in-largest-tech-ipo-of-the-year.html
Facebook – IPO in 2012
http://money.cnn.com/2012/05/18/technology/facebook-ipo-trading/index.htm
Questions:
What happened during Facebook’s IPO? What about Line’s IPO?
What were some of the challenges and obstacles Facebook faced during this period of time? What were some questions investors had about the company?
What is Line’s main revenue source? How do you feel about this revenue model?
What is Line and Facebook currently trading at? Right now, how does each company’s value appear to be trending?
Who are the strongest competitors in instant messaging services globally?
Why do you think the amount of companies choosing an IPO as a source of financing has decreased considerably over the past two years?
Type up your two paragraphs (6-8 sentences each paragraph) in a MS Word document.
Explanation / Answer
Answer 1:
Facebook set its final IPO price on Thursday, at $38. A quick gain of nearly 11% came out when the stock trading begin on Friday 11.30 a.m. with the first trade came in at $42.05 per share. But the things quickly changed and stock quickly reversed course and finally the session ended at $38.23.
Line (Japanese social networking firm) made its debut on Thursday at $42 per share. Shares value rose to $44.49 i.e. more than 30 percent. However, stock closed at $41.58.
Answer 2:
Challenges and obstacles Facebook faced during this period of time were that the price of the shares didn't move much. The opening was also delayed. Some questions that investors had about the company were what were the companies plan in order to raise the per share value of Facebook? Also investors bother about if at all the companies share looses value, how will the company pay out the losses suffered by investors.
Answer 3:
Line’s main revenue source are Stickers. They contribute to to more than $270 million in sales. For a set of one or two dozen of stickers, Stick packs are available that cost between $2 to $3.
Answer4:
Line is currently trading at $41.58. And talking about Facebook its current 179.30 USD.
Line’s value appear to be trending at a quite promising rate. However, the main intention of company is to target domestic market rather than international market.
Facebook shares on the other hand is gaining popularity worldwide and is trending operations are gaining a promising growth prospective for investors.
Answer 5:
The strongest competitors in instant messaging services globally are WhatsApp, Facebook, Line Skype, and WeChat.
Answer 6:
Companies that choose an IPO as a source of financing has decreased considerably over the past two years because of the size of bond issues. The money is blocked. Rather companies prefer to gain financing from easy options that avail a fixed amount of money with minimum risk.
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