Question 1Pros and cons of going public. Do these factors apply to Twitter?BenefitsImproves the company's ability to raise capital to finance future growth and acquisitions and repay debtThe market develops greater knowledge of the companyLimited shareholder liabilityThe company has a separate legal entity. There is continuity if shareholders die Taxation Disadvantage Lots of costly and time-consuming legal formalities Strict controls and regulations May lose some control over the company Public companies are large. It may therefore face management problems such as slow decision-making and industrial relations problems. The price and liquidity of the company's stock can be affected by market conditions as a whole, regardless of the quality of the company's management. These factors apply to Twitter but they don't affect Twitter as much because Twitter was a massive company before it went public. Compare the NASDAQ and the NYSE. Why did Twitter choose the NYSE to list its shares? Two of the largest stock exchanges in the United States are the NASDAQ and the NYSE. They both use different trading tools. Trading on the NASDAQ is fully automated, the NYSE uses designated specialists for each stock who act as a human safety net in case something goes wrong with electronic trading. NASDAQ has made a name for itself as a stock exchange for successful technology companies such as Microsoft, Intel, and Oracle. It is the second largest stock exchange in the world by market capitalization; The NYSE is the largest. But why did Twitter choose the NYSE to list its shares instead of the NASDAQ, which deals with some of the world's biggest technology companies? Just look at NASDAQ's shoddy work on Facebook's IPO. I don't think...... middle of paper ......iographyNASDAQ vs NYSE - Difference and Comparison | Different. 2014. NASDAQ vs NYSE – Difference and Comparison | Different. [ONLINE] Available at: http://www.diffen.com/difference/NASDAQ_vs_NYSE. [Accessed May 21, 2014].Twitter, Inc. Common Stock Price Chart | TWTR-Yahoo!7 Finance. 2014. Twitter, Inc. common stock price chart | TWTR-Yahoo!7 Finance. [ONLINE] Available at: https://au.finance.yahoo.com/echarts?s=TWTR. [Accessed May 27, 2014]. Does the Facebook deal signal a new tech bubble? | Talking numbers - Yahoo Finance. 2014. Is the deal with Facebook the sign of a new tech bubble? | Talking numbers - Yahoo Finance. [ONLINE] Available at: http://finance.yahoo.com/blogs/talking-numbers/does-the-facebook-deal-signal-a-new-tech-bubble-193203053.html. [Accessed May 29, 2014].https://www.commbank.com.au/business/rates-fees.html#betterbusinessresidental