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Analysis Of The Trading Price Of Facebook

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The trading price of Facebook common stock Class A has been and is likely to continue to be, volatile. The company common stock Class A was sold in May 2012 during the IPO for $38.00 the share (Investor FB, 2017). The stock price has gone from $17.55 at the beginning to $133.50 on December 31, 2016 (Investor FB, 2017). The stock price has fluctuated in the range of $54.71 to $80.02 from the beginning to the end of FY14, to $104 at the end of FY15 to $115.05 by the end of FY16. According to some factors considered in the Facebook ‘Form 10-K, the trading price of the common stock Class A could significantly vary in response to numerous factors, many of which are beyond the control of the organization (Yahoo Finance, 2017). Like fluctuation …show more content…

The company required that any items or behaviors that did not comply with the code of conduct of the company should be referred to file a complaint within 120 days to the Security and Exchange Commission (SEC) (Investor FB, 2017).
Facebook’ Personnel is anticipated to use their judgment to act, in all ways and all the times. Their Personnel should avoid actual any conflicts of interest. Facebook encourages its personnel to be active in the industry and civic association (Investor FB, 2017). Nevertheless, those who serve on the boards of advisory or boards of directors of other company need prior approval to avoid conflict committee (Investor FB, 2017). 2% of the total outstanding shares of a public traded company is required with no approval from Facebook. Anything greater needs approval (Investor FB, 2017). All personnel must comply with all anti-corruption laws of the country there are operating at.

5. Would you invest in this company based on your analysis? Why or why not?
Debt: With the increased of investment from the industry, Facebook’ liquid assets have significantly increased on the equity account since the company went public in 2012, which lower the debt ratio each year.
Gross Profit and Revenue: Facebook has made a large investment in assets in the recent years this investment on the assets has helped Facebook to increase its cost of goods sold and to generate more revenue to the firm. The increase of the revenue resulted in an increase

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