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A business has to issue a prospectus that lists information on its upcoming IPO and the potential that it holds. Facebook had to file proper information documents to the SEC. Facebook listed in its reports that it had more than 800 million active users every month at the time and that it had billions of likes and comments every day. The prospectus also listed information on how the business was growing with more users and access to a variety of countries. Even so, the growth rate was shrinking and Facebook expected that was because the social media site had such a large reach with so many people have already joined up.
Although the information listed on Facebookâs prospectus appeared to be mostly positive, it was still written by the company itself. This was done to try and make Facebook more appealing or positive.
