The Social network Facebook tries to reassure shareholders and investors worried about the future growth of the company. This took place after people started to question the online advertising platform provided by Facebook. The price per stock dropped to $ 17.73 at the end of Tuesday’s trading session in New York, reaching a new low, compared to $38on May 18, when it was listed on the NASDAQ market.
Facebook also announced that employees are not allowed to sell their own shares until November, 14. These measures will serve as “a sort of defensive wall” around the current decreasing share price. As a side-effect the amount of shares available in the market are reduced. In two months, more than a billion Facebook shares can be sold by current shareholders. This can lead to a huge drop in price per stock but until then the price per stock will most likely increase.