Facebook Unlocks Employee Shares

Amid media speculation about the impact of a flood of employees selling shares, Facebook shares were on a gradual decline in the days leading up to October 29, the day employee shares were to be released from lock-up. The release was delayed when the stock exchanges were closed, so on Wednesday 234 million shares became eligible to be sold, and the stock opened at $21, a 4% decline from its prior closing price. Trading volume was roughly 50% higher than usual. The price held roughly steady Wednesday and Thursday, but still far below the company's IPO price of $38. Facebook has three more rounds of lockups, which expire in mid-November, mid-December, and May 2013.