Facebook’s Stock Crash Has Created A Bunch Of New Problems For The Company…
Over the next 4 months, in other words, 2 billion Facebook shares will become eligible for sale—about 70% of Facebook’s total shares outstanding.
Given the massive amount of stock that will become eligible for sale at Facebook over the next year, it is highly likely that the company planned to do a secondary offering after the IPO to smooth this process.
Unfortunately, Facebook’s stock has crashed since the IPO and is now trading more that 40% below the IPO price.