(Credit: Sarah Tew)
Well, this was predictable.
For weeks now, pundits, stock analysts and the media have been warning that Facebook shares -- already under pressure for a variety of reasons -- would face a fresh challenge when so-called "lockups" expire, allowinginsiders holding pre-IPO shares to start selling them.
And that's exactly what happened today, doubtless bringing joy to the many short sellers who bet on the stock to fall.
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Today's "lockup" expiration was relatively small, with insiders now free to sell 271 million shares, adding to the 421 million already in circulation. Yet it was enough to do damage. On a day when the Nasdaq rose more than one percent, Facebook fell more than six percent to close at a... [Read more]
via CNET http://feedproxy.google.com/~r/cnet/NnTv/~3/k0BS2a88h8s/
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