The growth and reach of the popular social media website Facebook is quite impressive. Already a success, the future of the company has long been the subject of rumors. Recently, after a number of hints and changes in trading behavior, there is wide speculation that the company will finally file for its IPO in the very near future.
There have been rumors of this before. Until now, however, many of the indications that the company was filing for is initial public offering were not solid. According to a number of insights, however, this time it is for real. Analysts say that there have been some changes to the way in which the Facebook stock was being traded on secondary markets, possibly indicating an upcoming change.
While some suggest that the filing will happen this week, others say it will happen sometime in the next few months. If the company does, in fact, follow through with filing their papers, owners and employees stand to gain a lot of money. For example, founder Mark Zuckerberg could increase his worth by $10 billion. Other employees, such as engineers and developers, are likely to be well compensated as well.
During an IPO, Facebook would need to be in compliance with the Securities and Exchange Commission act, like any other company. If there is a mistake in something like a registration statement, companies may face penalties of fines or criminal charges. Additionally, there are a number of SEC-mandated restrictions regarding a quiet period that all employees would need to be aware of and comply with. Because this process can be quite complex and the penalties of non-compliance can be severe, it can be very beneficial to consult with a legal professional.
Source: CBS News, "Facebook IPO near?" Jan. 28, 2012