FB Lockup Expiration: Nothing to Fear?

  Google+  Twitter | + More Articles
  • Like on Facebook
  • Share on Google+
  • Share on LinkedIn

Facebook (NASDAQ:FB) investors have learned from the social network’s last lock-up expiration that major stock releases do not always need to be viewed with fear. Now, with 156 million shares set to be released from lock-up on December 14, investors’ concerns appear to have diminished since November, according to Forbes.

Facebook’s Lock-Up Expiration History

Ahead of Facebook’s November 804-million-share expiration, which was the largest number of shares to be released since the company went public in May, investors believed that the company’s stock would become further depressed with the increased number of shares available for trading. At that time, Facebook’s stock was trading at roughly half of its initial offering price of $38 per share.

Catalysts are critical to discovering winning stocks. Check out our newest CHEAT SHEET stock picks now.

Investors’ fears had a very real basis; when Peter Thiel, an early investor and a Facebook director, sold a large portion of his stake in August’s expiration, shares dropped down towards their all-time low. Furthermore, as Forbes reported, the last-minute increase of Facebook’s initial public offering “ended up contributing to a disappointing IPO.”

More Articles About:

To contact the reporter on this story: staff.writers@wallstcheatsheet.com To contact the editor responsible for this story: editors@wallstcheatsheet.com

Yahoo Finance, Harvard Business Review, Market Watch, The Wall St. Journal, Financial Times, CNN Money, Fox Business