Snippet from “As first ‘lockup’ ends, Facebook stock drops 5 percent” by Don Reisinger
“The first of Facebook’s “lockups” has expired, meaning that insiders can start selling their stock. But so far, it appears that a flood of shares and a plummeting share price aren’t in the offing for the social network.
In early-morning trading today, Facebook shares started out down about 5 percent to $20.15. It’s by no means a reassuring performance, but things could have been much worse.
Today, 271 million shares were freed from their lockup, allowing insiders included in that grouping to sell as many of those pre-IPO shares as they’d like. However, because Facebook’s stock price is so low — it went public at $38 — it’s believed that many insiders are hoping for a turnaround before selling their shares.”
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