The lock-up period for one group of private Facebook shares has expired, and the once private stock has been flooding the market, according to USA Today. In total, 271 millions shares will be unlocked this week, allowing early investors, employees, and the like to sell their stock.
Down the road, more stock will be unlocked -the next bunch expires on October 16 and another group will be eligible for sale on November 15. The latter will release 1.2 billion shares into the market. Experts have mixed reactions as to how these lockups will affect the company.
When Facebook went public this year, the company released a limited amount of shares for the general public to buy, as is common practice. The other shares were privately held by angel investors and venture-capital firms that invested in the company early on. According to the Wall Street Journal, a large number of those shares could be unlocking and flooding the market as soon as this week.