Facebook markdown

[marmar]

NEW YORK (CNNMoney) -- Facebook's life as a public company has been a nightmare from day one, and the pain continued on Thursday as some company insiders got their first chance to dump shares.

Facebook stock hit a new intra-day low of $19.69 Thursday morning, and ended the day 6.3% lower at $19.87.

About 22 million shares changed hands in the first 10 minutes of trading, and by the end of the session that volume soared to nearly 157 million shares. About 271 million shares are newly eligible for sale Thursday.

Like many initial public offerings, Facebook's May 18 debut debut included a "lockup" agreement that requires some shareholders to hold on to their stock for a certain period -- typically 90 to 180 days. Lockups are meant to prevent the market from being swamped with too many of a company's shares immediately after an IPO. Keeping stocks scarce can help boost their value. ...............(more)

The complete piece is at: http://money.cnn.com/2012/08/16/technology/facebook-stock-lockup/?source=cnn_bin

[HopeHoops]

1. Zuckenbugerstein or whoever the kid is must be drowning himself in vodka right now.

[erpowers]

2. Probably Not

Mark Zuckerburg, the guy who owns the company, is doing fine. He is not losing that much. It's the people who bought the stock on the very first day that should feel bad. Anyone who bought the stock on the very first day paid a premium price of about $38 per share. Since the share price has dropped to just under $20 dollars a share those people have lost nearly $20 per share. With the way thing look now unless something really big happens those individuals will sell their shares at a big lose. They could try to hold onto their shares and hope that the problems with the company can be fixed, with the way thing are going now if they hold onto their shares they might end up taking bigger losses.

[HopeHoops]

3. P.T. Barnum quote comes to mind.