Facebook jumps on biggest lock-up expiration day

Facebook jumps on biggest lock-up expiration day

Credit: Getty Images

MENLO PARK, CA - MAY 18: A 'like' sign stands at the entrance of Facebook headquarters May 18, 2012 in Menlo Park, California. The eight-year-old social network company listed their initial public offering on NASDAQ Friday morning at $38 a share and a valuation of $104 billion, making its IPO the third largest in U.S. history after General Motors and Visa. (Photo by Stephen Lam/Getty Images)

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KMOV.com

Posted on November 14, 2012 at 1:10 PM

   NEW YORK (AP) -- Facebook's stock is up more than 7 percent despite expectations that it would fall because more than 850 million additional shares in the company are being freed up for sale.

   Shares of Facebook Inc. are up $1.47, or 7.4 percent, at $21.33. Facebook went public in May at $38 in a much-hyped IPO that turned out to be a letdown for investors. Its stock price hasn't hit $38 since.

   Wednesday marks the expiration of Facebook's biggest lock-up period, which is a time following an IPO that prevents insiders from selling stock. In all, 773 million shares became eligible for sale, along with 31 million restricted stock units. And about 48 million shares held by former Facebook employees also became eligible for sale, bringing the total to 852 million.
 

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