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I read that Facebook got worth at billions after IPO, but how did this brought money to Mark himself. And did Facebook earned before IPO, or after IPO. I think that after facebook earns from revenue from ads for example, and this brings money to the company, and shareholders get money - and since Mark bought shares himself, he continues to get money - am I correct?

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  • $\begingroup$ Can you provide any sources that back up your question? :) $\endgroup$ – JoaoBotelho Jan 3 '18 at 14:07
  • $\begingroup$ This is not an Economics question, try Finance SE or Startups SE. $\endgroup$ – pafnuti Jan 3 '18 at 17:14
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Mark Zuckerberg is the founder of Facebook, and founders of companies own it via owning shares of that company itself.

During an IPO, several shares of a company are sold, and a part of the total shares remains in possession of the founders (such as Zuckerberg). This makes it easier to value the shares that are owned by the founders, as the shares are valued publicly in the stock exchange. When you see he is "valued in billions" this means that he owns Facebook shares which, if sold at current prices, would be worth billions.

In addition, Zuckerberg or founders can earn from his shares in two ways:

  • Dividends from the profits, like any other shareholder
  • Often founders are also CEOs and pay themselves a salary, or pay themselves house allowances / car / etc.
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