Facebook Stock Drops Wednesday after Ban Lifted on Employee Stock Sales

By Ed Silverstein November 01, 2012

Facebook employees can sell their stock this week with a ban lifted on insider sales. Up to 234 million shares and stock options could be sold.

It appears some employees may be eager to sell shares this week. On Wednesday, Facebook shares dropped more than any other time in five weeks, news reports said.

Company shares dropped 3.8 percent to $21.11 at the close of trading on Wednesday.


Image via Shutterstock

In August, a ban covering 271 million shares expired on sales by early investors and some directors. Some of these shares were held by Accel Partners, Goldman Sachs and Peter Thiel, a PayPal co-founder, according to The New York Times.

The AP estimated that as many as 1.5 billion shares could be sold.

The sales come after Facebook’s problem-plagued initial public offering in May. The stock has been a disappointment to some investors.

There are more key dates this year when bans will be lifted from selling Facebook shares, The AP said. On Nov. 14, 777 million shares and stock options could be sold. On Dec. 14, 156 million shares held by early investors and some others could be sold. Then on May 18, 2013 some 47 million shares held by Mail.ru Group and DST Global, who were early investors, could be sold.

The more recent sales ban was scheduled to be lifted on Monday, but did not take effect until Wednesday because the stock market was closed with the impact of Hurricane Sandy.

In August, TechZone360 reported that some of the causes of the falling stock price were an earnings report (which showed costs increasing more than projected) and lingering questions about future company growth. A few key executives (Katie Mitic and Ethan Beard) left the company. Also, Facebook reported more than 83 million Facebook accounts were duplicates or fakes.

Meanwhile, the company is trying to come up with a way to take advantage of mobile devices.




Edited by Brooke Neuman

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

Comings & Goings: Citrix CEO Steps Down as Company Gears for an Overhaul

By: Tara Seals    7/29/2015

There appears to be a bit of shakeup going on over at Citrix, the venerable distributed computing company. Long-time Citrix CEO Mark Templeton has ann…

Read More

Three Reasons Passwords Are Here to Stay

By: TMCnet Special Guest    7/28/2015

Siber Systems explains why someday passwords will be a thing of the past, but not any time soon.

Read More

Wheelings & Dealings: Visa Joins Amex with Giant Investment in Payment Startup Stripe

By: Laura Stotler    7/28/2015

Payment startup company Stripe has scored a whopping round of funding, with Visa taking a major interest in the company's technology. The funding amou…

Read More

Google Removing Google Plus Requirements

By: Andrew Bindelglass    7/28/2015

When Google first revealed its answer to social media giants Facebook and Twitter in 2011, it was met largely with a fizzle. With membership in Google…

Read More

US Seventh Circuit Court of Appeals Validates Class Action Suit Over Data Breach

By: Peter Bernstein    7/27/2015

Since what follows is about legal matters, let me start with the disclosure that I am not a lawyer, have no legal training and this is not an attempt …

Read More