Facebook stock hits another low; Zuckerberg not selling out

The bad news for people who own shares in Facebook continued on Tuesday as the stock price for the social networking service went down to yet another all time low of $17.73. The stock price is now down well over 50 percent compared to when it launched its IPO back in May.

Some people who bought into Facebook early are now running for the hills and selling off their investment. One of them was Microsoft, an early investor that sold off 20 percent of its stock in the company a few weeks ago.

One person that won't be doing that, at least for now, is the company's founder and CEO Mark Zuckerberg. In a new filing with the US Securities and Exchange Commission, Facebook said that Zuckerberg " ... has informed us that he has no intention to conduct any sale transactions in our securities for at least 12 months."

Zuckerberg did sell off 30 million shares when Facebook's IPO went live at its starting price of $38 a share, which shows he's pretty smart. He still owns 444 million shares in Facebook, along with 60 million shares that are issued to Zuckerberg with the exercise of an option.

Source: SEC filing | Image via Facebook

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17 Comments

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Detection said,
No idea, but DIE FACEBOOK DIE

Few years ago my FB account was hacked, and lost. I have a new one now, but barely use it. I must say, not having an active FB account is a great feeling.

Tidus4eva said,
Sooo, if I want to outrank Zuckerberg, all I need is 450 million shares? Excellent...

I have no idea how stocks work.

if you succeeded in buying 450 million shares (which at the moment is of course impossible for obvious reasons) you would have succeeded in a very succesful hostile takeover. In practice you would need a lot less.

Those numbers in the article don't mean much unless the author shares with us how many shares FB issued. Then we can calculate the percentages.

Tidus4eva said,
Sooo, if I want to outrank Zuckerberg, all I need is 450 million shares? Excellent...

I have no idea how stocks work.

Nope. Facebook has a tiered system, where there are A shares and B shares. A shares (issued, I believe only to employees and other investors pre-IPO) get 10 votes, B shares get 1. If any A share is sold at the market, it converts to a B share.

Basically, no one can ever oust Mark through a buyout unless he sells his shares directly to them.

AtriusNY said,
Secondly, why was Zuckerberg smart to sell his shares? Somebody has to. Otherwise how can a company go public?

CREATE SHARES OUT OF THIN AIR - JUST LIKE MONEY!

Yes, I'm looking at you, Federal Reserve! *grim face*

GS:mac

Creating shares out of thin air can be a measure when a company needs immediatre cash. By doing so, the company makes sure that the cash goes to its own coffers rather than the shareholders'. Yet, the holdings of the shareholders of course decrease percentagewise, while the number of shares they hold remain the same.

AtriusNY said,
Secondly, why was Zuckerberg smart to sell his shares? Somebody has to. Otherwise how can a company go public?

He sold shares at an overinflated, unreal value.... for hard cash, that is why he was smart.
Also a company can be established issuing, for example, 1,000,000 shares but only distribute to founders and shareholders 500,000 ones and keep the remaining ones to sell or distribute them later.

siah1214 said,

Microsoft sold just enough shares to get their investment back.

And now they are sorry they did not sell more.......... (-: