These words have been added to the daily vernacular of the American teenager. Created by Jack Dorsey, Evan Williams, Biz Stone and Noah Glass in March of 2006, the popular blogging social media website, known as Twitter, soon became a national phenomenon and is now one of the top 10 most visited websites on the web Twitter Wikipedia.com). In November of 2013, Twitter held an IPO. Standing for Initial Public Offering, an IPO is a way for a company to make money based on expectation of future success and profit. A certain number of shares in the company become able for the public to purchase. Once this long, expensive, and complicated process is complete, the company is now owned by a variety of investors and is no longer a private company. The money that's made usually goes towards the expanding and upgrading of the business. Companies such as Pepsi Bottling Company, Kraft Foods, and AT&T have all held IPOs (Grabianwski, Ed). More recently though, Internet and social media websites such as Google, Linkedin, Facebook and Twitter have been joining in on the fun. The IPOs of Facebook and Twitter have become two of the most talked about on Wall Street today. .
When you compare the two, Facebook profited more from their IPO, but Twitter's was managed much better. In the future, Twitter is going to have to work very hard to impress investors and succeed in the long run. There was doubt in the beginning, but Twitter handled their IPO well. When you put it up against Facebook's, Twitter's was a much smoother IPO. However, the future of the company is still a bit up in the air. On September 12th, 2013, Twitter announced they'd filed papers with the SEC for an IPO (Twitter wikipedia.com). The SEC, the U.S Securities and Exchange Commission, protects investors and maintains fair and orderly efficient markets in the world of stocks. All companies who want to hold an IPO must have it approved by them (The Investor's Advocate).