Finace Essay Example | Topics and Well Written Essays - 250 words

Finace - Essay Example Moreover, by selling their stocks public, the company’s innovation sector might be affected (Hinchcliffe 25). With this, company will have a large management structure which could impair the level of innovation hence reduce the development of new products that are demanded by the users (Healey 13). On the other hand, the IPO will assist the company in acquiring more capital that could improve the level of innovation and improvement of the infrastructure which would therefore translate into better users’ services. The manner in which innovation will be unveiled by the company will could also change in order to protect the users from hackers. In addition, the IPO will imply that the company’s culture has to change (Healey 14). A public company has to adhere to the several regulations of the commission in terms of its management and the manner of operation. This will then affect service delivery to the users who might expect delays in launching new products or brands. By going public through the offering, face book will be in a position to become accountable to the users. A public company is obliged to make public their financial statements and their undertakings (Hinchcliffe 25). Users, whose expectations and rights are violated will therefore get the opportunity to seek remedy and would get the support of the regulators. In summary, face book IPO impacts on the users even though majority is not concerned with the potential outcome and impacts. The major impact will however be on the users’ privacy rights. An IPO enables a company to attract more capital that can be used for expansion or improvement of services and these would be felt by the consumers. Healey, Jon. "Facebook IPO Disappoints, to the Delight of Many - latimes.com." Los Angeles Times - California, national and world news - latimes.com. N.p., n.d. Web. 20 May 2012.