Facebook employees who were hoping to cash out some of their shares before yesterday's lock-up period, got their hopes dashed yesterday, as trading on the New York and NASDAQ stock exchanges was postponed, due to the passage of Hurricane/Superstorm Sandy.
(Every company with an IPO, has several lock-up periods - periods during which employees and pre-IPO investors are allowed to sell shares. (This frees up shares for other investors to buy).
Once that period expires, then these employees and early investors have to wait until the next lock-up period to sell their shares.
The problem with the trading-day delay due to Hurricane/Superstorm Sandy, means that persons who wanted to offload their shares on Monday, have already sold them in theory, but in practice, can't get the proceeds from this sale, until trading resumes).
As of close of day on October 26,2012, Facebook shares were trading at $21.94/share. This represents a 42% decrease in Facebook's share price, since it's IPO price of $38/share on May 18,2012.
However this price ($21.94), is not expected to substantially change when trading resumes, so Facebook employees, I guess can breathe a sigh of relief).
In the meantime, in other Facebook-related news:
Citigroup has fired two (2) analysts for leaking private, pre-IPO information they gleaned from researching Facebook, to, in one case, a leading technology blog - TechChrunch.com and in the other, to a French magazine - Capital.
Citigroup was one of the banks involved in underwriting Facebook's IPO.
The Massachusetts Securities Regulations prevented underwriters from sharing written research on Facebook, until forty (40) days after the company went public.
This was supposed to ensure that investors didn't have access to insider information that would give them an unfair advantage, due to information gleaned from their investment bank (where they are clients).
Since Citigroup breached this agreement, they were fined $2 million by the Massachusetts Securities Regulators.
1) Facebook Year-to-Date Stock Quote (Information) via Google Finance, accessed October 30,2012
2) Article, "Hurricane Sandy Devastates New York City" via FOX43 WPMT - Pennsylvania Fox News, October 30,2012
3) Article,"Another Facebook Lockup Expires, But Sandy Delays Potential Stock Sales", The Wall Street Journal's Deal Journal, October 29,2012
4) Article,"City fires analysts, pays $2m fine over Facebook disclosure", By Liz Moyer and Matthias Rieker, Dow Jones Newswires, via Total Telecom, October 29, 2012
5) Article, "City fires analyst, pays fine over Facebook leak", by Christina Rexrode- Associated Press, via Yahoo News, October 26, 2012
6) Article,"Millions More Facebook Shares Coming Soon", By Matt Krantz, USA TODAY, June 3, 2012