Facebook Makes its Debut on Nasdaq
NEW YORK (AP) - Facebook is updating its status to "public company" as its stock jumps in its debut on the Nasdaq Stock Market.
The stock opened at $42.05 on Friday morning. It later settled at $39. CEO Mark Zuckerberg smiled as rang the opening bell from Facebook's headquarters in Menlo Park, Calif. Surrounded by cheering Facebook employees and wearing his signature hoodie, the 28-year-old pushed the button that signals the opening of the stock market in New York.
On Thursday, Facebook and the investment bankers arranging the IPO settled on a price of $38 per share. The company and its early investors raised $16 billion in the offering, which valued Facebook at $104 billion. That makes Facebook the most valuable U.S. company to ever go public.
Now, the stock market will assign a dollar value to Facebook that will rise and fall with investor whims. It will be subject to broad economic forces and held accountable for profit it earns -or loses-from one quarter to the next.