Facebook’s IPO: What We Know Now
Big winners ...
Who are the big financial winners from the IPO?
Facebook is only getting about half— or $5.6 billion — of the roughly $10.6 billion it plans to raise. The other half is going to a some inside investors. Chief among them are co-founder and Chief Executive Mark Zuckerberg, venture firm Accel Partners, early investor and PayPal co-founder Peter Thiel, Russian tycoon Yuri Milner's DST, and investment bank Goldman Sachs.
What happens legally when a firm like Facebook goes public?
The company falls under the guidelines of the SEC.It's already doing so by applying for an IPO as financial filings such as the one mentioned above, have to take place.
After the IPO has taken place, Facebook will have to follow disclosure rules, including holdings and transactions of insiders or the officers and directors of the company. It will have to disclose its financial status on a regular basis and come under surveillance by the SEC on its trading practices. Of course, it will have to hold shareholder meetings.
CORRECTION: An earlier version of this story incorrectly referred to Eastern Standard Time (EST), when it should have said Eastern Daylight Time (EDT).