I guess my ? is. Who buys this chit????????
NEW YORK (CNNMoney) -- It's déjà vu all over again for Facebook. On Wednesday, the company faces yet another day when millions of shares could hit the market -- and this may the biggest potential stock dump by far.
Early employees and investors will get their first chance to sell about 773 million shares, as well as another 31 million restricted stock units owned by employees who joined the company prior to 2011. Like many initial public offerings, Facebook's May 18 debut included a "lockup" agreement that requires some shareholders from selling for a certain period.
Lockups, which typically last 90 to 180 days, are designed to prevent the market from being swamped with too many of a company's shares immediately after an IPO. Keeping the amount of stock scarce can help boost the price.
But this scarcity hasn't helped Facebook. Shares have lost nearly half their value since they debuted at $38. The stock was down about 1% in early trading Tuesday, following a 4.6% jump Monday.
Facebook (FB) has already made it through several lockup expiration periods. The company employs a somewhat unusual staggered system, with a total of five lockup expirations. Wednesday is the third (and largest) in the series.
The first came in August, when early investors were able to
http://money.cnn.com/2012/11/13/technology/social/facebook-lockup/index.html?iid=Lead
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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