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'Lock-up' period ends for Facebook insiders

'Lock-up' period ends for Facebook insiders

The "lock-up" period, which prevent insiders from selling shares too close to an IPO, typically expires 90 days after a stock makes its public debut.

From Thursday, Facebook's early investors and some directors can sell their shares. The "lock-up" period, which prevent insiders from selling shares too close to an IPO, typically expires 90 days after a stock makes its public debut.

The end of this period will also give many Facebook employees the right to sell their shares.

If they sell their holdings, up to 1.91 billion more shares could flood the stock market over the next several months.

Facebook shares are down nearly 45 per cent from its initial public offering price of $38.

In all, 271 million shares will become eligible this week, according to Facebook's regulatory filings. Facebook's chief executive, Mark Zuckerberg however won't be able to sell his shares until mid-November.

Published on: Aug 16, 2012, 4:22 PM IST
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