Wednesday, August 29

Facebook has can tanks share on the first day of early investors dump

Facebook's share price fell to an all-time low Thursday, as the first part of a so-called "hang" time for the most important investors in the company to an end.

The period lasted for 90 days after the social network of IPO on May 18, prevents that some early investors and insiders sell million shares that they own in Facebook.

These early investors include Accel Partners, a venture capital firm and Wall Street bank Goldman Sachs. Facebook insiders include members such as PayPal co-founder Peter Thiel and Reid Hoffman, founder of LinkedIn is.

Facebook's share price took a Thursday morning Rammender, although it is unclear whether the decline is to insider selling their shares or other shareholders sell on concerns that insiders could be unloaded their shares in the company. Everyone has to have seller take three working days to your sales report.

Lockup periods prevent insider sell their shares too close to a public offering, caused volatility in a stock.

More than 5 percent at $20, gefallener by 7.1 percent to an all-time low of $19.69 in trade in the morning until the afternoon trade Thursday was Facebook's share price. Facebook share price has lost 48% of its value since its debut in may in a $38 price.

Some early investors include 270 million shares for sale Thursday was available-more than half of the 421 million shares, the Facebook its initial public offering in may sold.

But on Thursday, end is only the beginning of a troubling time for Facebook shareholders.

This fall of 1.20 billion shares for sale, shares are flooding the market with Facebook as a second waiting for the stock end and may decrease the value of the shares of the company. The final lockup period ends IPO next may, a year after Facebook's.

Facebook has faced a difficult three months since the public offering which was one of the most expected IPOs in history.

The company suffered by botched public offer, marred by trading of glitches on the NASDAQ Stock Exchange. The share price has the price for the offer critics who say underwriting banks traded does not have $38 since his debut, leading too high and too many shares sold to the public.

Investors are also concerned about Facebook's ability to make money from its users, of which many now access the site from mobile devices where the company derives little advertising revenue.

Mark Hawtin, investment Director of GAM, a, made the bullish case for Facebook on CNBC Thursday, say Facebook find finally a way asset management firm, earning nearly 1 billion users.

"I have confidence in the company," he said:

Still, market generated much negative comment to StockTwits Thursday action for Facebook's stock, micro-blogging site has investors.

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