Facebook stock slumps as first lockup for insiders ends

Answer 1

Facebook shares traded as low as $19.69 and closed at $19.87 as some company insiders got their first chance to sell their shares with the expiration of the first lockup period which banned shareholders from selling.

Facebook's initial public offering debuted on May 18 at $38 per share and has since lost almost half of its value, however, it is common for IPOs to lose value when lockup periods expire.

Facebook has a series of lockup expirations coming over the next 9 months and the biggest sell-off is expected in November when restricted stock units will be converted into actual shares of stock.