Since Facebook’s IPO launched to the tune of billions of dollars and millions of shares of stock sold, the social networking company has kind of fallen on hard times, in so much as a multi-billion-dollar company can fall on hard times. The first lock-out period for Facebook insiders has ended, meaning 270 million shares of Facebook stock hit the market. In response to the glut of supply, Facebook stock sank to a record low of $19.69 per share. That’s not exactly good.
Still, it’s expected. That’s a lot of shares to hit the market at once, and Facebook stock rebounded to $19.87, which is a good sign. Facebook insiders hold another 1.6 billion shares of stock ready to go up when other lock-out periods end this year and next. There are three more lock-outs for insiders, which means that this will happen again and again before this is all over and stock supply stabilizes. The fact that it recovered should give those sitting on millions of shares of pre-IPO Facebook hope for their future.
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