Reuters
Shares of Facebook Inc (FB: 21.20, +0.82, +4.02%) fell 2% in premarket trading on Thursday, ahead of an end to a lockup period that prevented some insider sales.
More than 270 million shares will be unlocked at the market open, which is more than half the 421 million that were sold in the social networking company’s initial public offering in May.
The deluge is not expected to add to the stock’s recent weakness as insiders hope for a recovery in the share price before they unload. As of Wednesday’s close of $21.20, Facebook shares have plummeted 44.2% from their IPO price of $38.
The stock lost another 2% before the bell on Thursday, falling to $20.78.
Another 243 million shares are set to become available between mid-October and mid-November. On Nov. 14, more than 1.2 billion shares will be available for trading. Chief Executive Mark Zuckerberg will not be able to sell his shares until then
Will Facebook Shares ever stop falling?
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