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Facebook Lock-Up Expires, Investors Run

Shares hit a new all-time low once investors could sell


Yesterday, we warned you of a potential “flash flood” for shares of Facebook (NASDAQ:FB) — and that flash flood is exactly what happened.

This morning, the first tier lock-up of the company expired, meaning that 271 million shares — two-thirds of the total and more than half of the total sold in the IPO — became available for sale.  The result? FB dropped to a new all-time low.

The stock fell 7% by mid-morning and hit hit an all-time low of $19.71 before making slight gains. More than 62 million shares were traded an hour into the expiration — more than twice the stock’s average daily volume the past 30 days, The Wall Street Journal reported.

The company’s has lost nearly 50% of its value since the botched May IPO. And this is just the beginning — the company also has other lock-ups expiring in October, November and December.

Article printed from InvestorPlace Media,

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