How huge is Facebook? A recent estimate says:
Facebook accounts for 95 percent of social networking time on internet in United States. It has been found that on an average 1 out of every 7 minutes U.S online users spends their time in using Facebook .
As a result speculation of what a Facebook IPO (initial public offering, in other words becoming a publically traded stock) might look like has run rampant.
Carly sent along an article at BusinessWeek that discusses how the massive IPO would further illuminate the dependance of California on capital gains taxes and how the volatility – particularly with the economic downturn the last few years – has hurt the state, saying it
shows the boom-and-bust cycle that capital gains taxes often inflict on California’s budget. In fact, capital-gains tax revenue as a percentage of the state’s general fund plummeted from 12 percent to just 3 percent between 2007 and 2009 as investors pulled away from the stock market, a decline of $9.3 billion, according to state finance department figures.
“It is a significant concern,” said Gabriel Petek, an analyst at Standard & Poor’s, which ranks California’s credit the worst among its peers at A-. “It’s probably one of the things that presents a structural impediment to the rating and makes it hard for the state’s credit rating to move up into the AA range that the typical state is.”
Now we have an infographic that breaks down the estimated 10+ billion IPO (6x bigger than Google’s 2004 IPO), the 25 BILLION Mark Zuckerberg could make, and more! Check it out!
Created by: Accounting Degree Online
