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Facebook Prosectus

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Submitted By alex041990
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Facebook Prospectus Project
Review the Facebook Prospectus and answer the following questions.

1. How many total shares of stock are being offered by Facebook?
-180,000,00

2. How many shares are new shares, and how many are existing shares being sold by current shareholders?
-421,233,615

3. Describe the classes of shares, and the voting rights the shares will have. * Shares of Class A common stock are entitled to one vote per share. * Shares of Class B common stock are entitled to ten votes per share

4. Which class of stockholders will hold control of the company?
-Class B

5. Does any one shareholder have control of the company? If so…who?
-A dual class common stock holder 6. On which exchange will Facebook be traded?
NYSE

7. At what price is the stock offered to the public?
- $38.00 per share

8. What is the Underwriters Commission? * Underwriting commission is the compensation that an underwriter receives for placing a new issue with investors. It is the fee which an investment banker charges for underwriting a security issue

9. What are the net proceeds expected by Facebook.
- $998 million

10. What investment banks make up the Underwriting Syndicate? * ALLEN & COMPANY LLC CITIGROUP CREDIT SUISSE * DEUTSCHE BANK SECURITIES RBC CAPITAL MARKETS * WELLS FARGOSECURITIE

11. Review the risk factors. Which 3 or 4 cause you the greatest concern?
If we fail to retain existing users or add new users, or if our users decrease their level of engagement with Facebook, our revenue, financial results, and business may be significantly harmed • We generate a substantial majority of our revenue from advertising. The loss of advertisers, or reduction in spending by advertisers with Facebook, could seriously harmer business;
• Growth in use of Facebook through our mobile

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