Thursday, November 15, 2012

Facebook stock jumps 12.6 percent as share lockup expires




Reuters reports that shares of Facebook Inc jumped nearly 13 percent on Wednesday, as investors breathed a sigh of relief that expiring trading restrictions on a huge block of shares failed to trigger an immediate wave of insider selling.

"While the lockup is expiring, there is nothing requiring anybody to sell," said Tim Ghriskey, chief investment officer at Solaris Group in Bedford Hills, New York. "Given the low price, these long-term holders are deciding to hold the stock, and that is lifting it here as the fear of the expiration subsides."

Roughly 800 million Facebook shares were eligible for sale on Wednesday after restrictions on insider selling were lifted on the biggest block since Facebook's May initial public offering.  The lockup expiration greatly expands the 921-million-share "float" available for trading on the market until now....

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