Facebook Stock Falling As Employees Begin Selling Shares

October 31, 2012

 Facebook’s stock price fell Wednesday, the day employees were eligible to start selling restricted stock in the company.

A lock-up period that had prevented such sales expired on Monday. U.S. stock markets opened on Wednesday for the first time since Superstorm Sandy hit the East Coast, so that’s when employees could start selling.

In all, 234 million additional shares and stock options held by employees as of Oct. 15 became eligible to flood the market. CEO Mark Zuckerberg is not selling. He has already said that he won’t be selling stock until at least next September.

Lock-ups are common after initial public stock offerings and are designed to prevent a stock from experiencing the kind of volatility that might occur if too many shareholders decide to sell at once.

Facebook’s stock hasn’t done well since its IPO in May amid concerns about its ability to keep growing revenue. But it saw its biggest one-day gain last Wednesday after posting strong third-quarter results. The day before, Facebook detailed for the first time how much money it makes from mobile ads. Mobile had been a concern since before the Menlo Park company’s IPO.

The next lock-up expiration comes on Nov. 14, when 777 million shares and stock options will become eligible to be sold.

Facebook Inc.’s stock fell 83 cents, or 3.8 percent, to close at $21.11 Wednesday. The stock is down 44 percent from its IPO price of $38.

Views: 96

Comment

You need to be a member of United Truth Seekers to add comments!

Join United Truth Seekers

Help Pay The Rent. "United Truth Seekers" Is an informative Social Network exposing the truth that the mainstream media ignores. The truth will set you free!

This website is brought to you exclusively by member donations. Click Above, Thank you.

Eastern Standard Time

hT8m6O-9qVrq2bOevD5ouGyVgnD6Mgy_3vvjGdck

About

Badge

Loading…

DEMAND THE TRUTH!

"It was the poverty caused by the bad influence of the
 English Bankers on the Parliament which has caused in the colonies hatred of the English and...the Revolutionary War."
– Benjamin Franklin

"Guard with jealous attention the public liberty. Suspect every one who approaches that jewel. Unfortunately, nothing will preserve it but downright force. Whenever you give up that force, you are ruined."

Patrick Henry
June 26, 1788

 

© 2020   Created by Pam Vredenburg.   Powered by

Badges  |  Report an Issue  |  Terms of Service

google-site-verification: google4dc7c778a884c7b9.html