The Facebook Insiders Who Dumped Stock

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This list of Facebook insiders that sold stock already is kind of interesting. It looks like Zuckerberg even cashed out a few shares for a cool billion and change. :eek:

Mark Zuckerberg, Facebook's CEO, sold 30.2 million shares for $1.14 billion
Accel Partners, an early Facebook investor, sold 57.7 million shares for $2.1 billion
Peter Thiel, a very early Facebook investor, sold 16.8 million shares for $638 million
DST Global, a Russian investment fund, sold 45.7 million shares for $1.7 billion
Goldman Sachs, a Facebook investor, sold 24.3 million shares for $923 million
Elevation Partners, a Facebook investor, sold 4.6 million shares for $175 million
Greylock Partners, a Facebook investor, sold 7.6 million shares for $289 million
************** Group, a Russian Internet company, sold 19.6 million shares for $745 million
Mark Pincus, the CEO of Zynga, sold 1 million shares for $38 million.
Meritech Capital sold 7 million shares for $266 million
Microsoft, a Facebook partner and investor, sold 6.6 million shares for $250 million
Tiger Global, a hedge fund, sold 19 million shares for $722 million
Reid Hoffman, a Silicon Valley investor, sold 943,000 shares for $36 million

Comments
 
Looks like some people knew something they didn't care to share with the suckers who bought.
 
I don't think you had to know something special to know that you should buy and sell quickly.

Naw, but it is far more suspicious given that banks inflated the IPO price only to sell off and run for the hills.
 
without seeing how other IPO's fare it's difficult to say this is abnormal

does it not make sense that early investors sell their stocks shortly after the offering during the *pop* in order to recoup their investment money?

it doesn't seem like MS, for an example, would seed a company with $250 million dollars just to sit on the stock for ten or more years. It seems strange to expect venture capitalists to be long on their stock holdings.
 
These people are nto stupid. They know that social network sites come and go. They made Millions why they could. Anyone stupid enough to buy Facebook stock should lose money so that they cannot continue to make dumb investings in the future.
 
Surprising for me was that all those large shareholder essentially got near the $38/share price, I thought there was some level of restrictions for when they could dump their shares.

Also notice I don't see Eduardo S. name on there, he paid taxes on well more than the actual value of it now. Although I guess he may not need to report the filing due to his local now.
 
This is a classic pump-and-dump scam.

Kinda. Mostly people from the outside of the company are the ones attempting the pump and dump scam to try and keep from getting caught. If you were to suddently heavily invest in a company by buying up a bunch of stock, that alone can send the price of their shares skyrocketing, letting you dump it for much cheaper.
 
As was said earlier, social networking sites come and go and I think every one of those people know it so they sold off when the getting was good. Hell, Zuckerburg would have been an idiot not to jump on it. At its most conservative, if he stuck all that money into a bank and lived off the interest he would still be making 11.4 mil a year at 1% interest....11.4 million....I would take 1% of his 1% interest shoveling shit all day if it was offered to me, lol.
 
Surprising for me was that all those large shareholder essentially got near the $38/share price, I thought there was some level of restrictions for when they could dump their shares.

Usually there are restrictions within the first year or two of receiving the shares. Most of these people have had their shares for a while now.
 
without seeing how other IPO's fare it's difficult to say this is abnormal

does it not make sense that early investors sell their stocks shortly after the offering during the *pop* in order to recoup their investment money?

it doesn't seem like MS, for an example, would seed a company with $250 million dollars just to sit on the stock for ten or more years. It seems strange to expect venture capitalists to be long on their stock holdings.

Actually I was thinking the data presented is sort of meaningless without showing at what point the stocks were sold. For example if they were grouped right around the opening of the IPO then it could raise the possibility they knew it would tank and wanted out from under it, on the otherhand if it was sold once it started tanking their actions could very well be their simply dumping it before the value got any lower.
 
Usually there are restrictions within the first year or two of receiving the shares. Most of these people have had their shares for a while now.

Ah, I see, shows how much I know about how stocks work. I thought it was a restriction based upon when the stocks go public.
 
These people are nto stupid. They know that social network sites come and go. They made Millions why they could. Anyone stupid enough to buy Facebook stock should lose money so that they cannot continue to make dumb investings in the future.

Yes, money should be given to those who know best how to take it or spend it.
 
Ah, I see, shows how much I know about how stocks work. I thought it was a restriction based upon when the stocks go public.

It can be structured either way. But the higher ups write the rules, so the rules will favor them, of course.

So Zuckerberg can sell whenever he wants. Likewise with a lot of the big players who were financing facebook before it went public, they will have favorable agreements because they negotiated them with their millions of dollars when Facebook needed the money.

I bet regular Facebook employees are still waiting to vest.
 
I don't think anyone on that list is surprising. VC groups dumping stock at an IPO is pretty standard practice. And Zuckerberg had said how much he was going to be selling before the IPO even happened and most of the money he made from that sale was going towards the enormous tax bill he's going to be hit with from becoming a sudden billionaire a few times over. Of course since his net worth has plummeted along with the stock I am sure his taxes are looking a bit rosier now.
 
Is there anyone who didn't expect this to be the typical dot com scam where they inflate it's value prior to the IPO with a orchestrated media blitz to lure the suckers who buy on hype?
 
I don't think anyone on that list is surprising. VC groups dumping stock at an IPO is pretty standard practice. And Zuckerberg had said how much he was going to be selling before the IPO even happened and most of the money he made from that sale was going towards the enormous tax bill he's going to be hit with from becoming a sudden billionaire a few times over. Of course since his net worth has plummeted along with the stock I am sure his taxes are looking a bit rosier now.

I noticed from the Mark Zuckerberg numbers that the shares were sold close to the £38 opening price, which suggests that Mark Zuckerberg sold his $1 billion worth of shares pretty much ASAP. I was wondering why.
 
Why is everyone assuming these guys sold every last bit of their stock? Wouldn't it make sense to get rid of a chunk of it and hold onto a chunk of it? I'd like to know how much each one of these still have in the stock.
 
Why is everyone assuming these guys sold every last bit of their stock? Wouldn't it make sense to get rid of a chunk of it and hold onto a chunk of it? I'd like to know how much each one of these still have in the stock.
Well, I'll stick with Microsoft because I suspect a lot of people here have heard of them.

The initially bought a little over 35 million shares. If they sold 6 and a half million shares then they still currently hold nearly 30 million shares.
 
This article, http://online.wsj.com/article/SB10001424052702303448404577407774136362662.html , claims that Peter Thiel and Goldman Sachs sold about 50% of their stocks so they would currently hold about 15 million and 25 million shares, respectively.

The article also points out that, while not unheard, the early investors selling their shares in larger numbers than usual can signal that it means they feel it's a good time to profit from their shares.


Of course, given that the larger investors are traditional wall street participants along with FaceBook's unique and more modern approach to business (and not to mention Zuckerberg's estranged relationship with Wall Street) this shouldn't be a surprise.

There are far more people who believe that FaceBook's value isn't going to go anywhere but down. It's fate isn't up to them, though.
 
*sniff sniff* You Smell that?

Smells like insider trading to me. :D
 
I am surprised by the Russian Investors.

Part of their deal was probably direct access to the back-end data, so they could pass it on to their contacts in the Russian mob to perpetrate identity theft, spamming, etc.

Wanna buy some stock in a tin company?
 
The stock market is a good way to invest for the middle-class, but it's also a huge scam to help the rich get richer, through insider trading and other means. Facebook's IPO turned out to be nothing but a way for Facebook execs and insiders to loot the public.
 
doesn't say how much they bought the stock for.
original offering was about $38 i think. so 1 million shares bought 38 million / 1 million shares sold 38 million.
no money was made except for mark Z. he started with nothing.
 
What I don't know, and don't understand.. is in order to SELL these stocks, someone had to BUY them.. so WHO is left holding all these millions os soon to be worthless stock, and are taxpayers going to be stuck paying for it?
 
microsoft only sold enough shares to recoup what it spent..it still has a ton more shares. perfectly what one would expect of an early investor during ipo.
 
What I don't know, and don't understand.. is in order to SELL these stocks, someone had to BUY them.. so WHO is left holding all these millions os soon to be worthless stock, and are taxpayers going to be stuck paying for it?

That's where the stock price comes into play. Someone wants to sell, and no one wants to buy, then the price drops.. eventually it drops to a point where there is a buyer for said stock. At least that's the theoretical way it should work.

Selling short kind of puts a twist on that, since you can sell what you don't have with the promise to buy that much later. Basically betting the stock will go down.

Tax payers aren't going to be stuck paying for anything, no gov't on Earth would bail out Facebook, stop the stupidity please.
 
Calm down everyone... No two stocks ever have the same histories; Facebook is a special case. Perhaps the IPO marked a top, which is very unusual for most stocks (actually not that odd in this case considering the mucked up IPO day).

Take a look at the Pre-IPO pricing history at the following link:
https://www.secondmarket.com/facebook-on-secondmarket/

FB is just taking a much needed break after it's Pre-IPO rise. Maybe that pullback finished when it dipped just below $20.
 
doesn't say how much they bought the stock for.
original offering was about $38 i think. so 1 million shares bought 38 million / 1 million shares sold 38 million.
no money was made except for mark Z. he started with nothing.

Wait...you think the initial investors paid $38 a share? No, we don't know exactly how much each investor paid, but, no (NO!)! No one investing into start ups would agree to that (Plus user above me posted a link, it gives some indication regarding early investors). But break even when they sell (negative after trading/transaction fees)? I mean come on, it came to market almost at that price and tanked 50%. That'd be the shittiest investment strategy ever, even if they sold it the first five minutes, which they can't, not all of it anyway. Some (a large percentage) has to be held for at least three-six more months after the initial IPO (to prevent the investors themselves from tanking a stock).

I'll assume (have to) there's some kind of clause/contract in place preventing the general public from finding out from the initial investors exactly how much they paid since it'd kill the stock price even more. More then likely though, they paid around 1-20% (sure it ranged) of what it opened at.

LOTS of people made money, actually, ALL of the initial investors made money! Who lost/or wont make money off it? The middle class! Anyone and everyone naive enough to think investing into this shitholes company, that's who. This shit should be illegal!

The initial investors were given accurate information right before IPO while the soon to be investors were given other less accurate information. Right out of the gate, the stock dropped because there was so much supply and not enough demand (anything they could sell, they were selling, no one believed in it) , the stock never even hit its resistance level. As soon as that happened (probably sooner...lol), all the savy investors wouldn't touch FB at even $15-$20 a share.

The only people that are moving this stock right now are day traders and people that lost from day one of the IPO (early jumpers) and are cutting their loses before things get even worse. FB is 100% on its way out unless they use their new money and create something new and (again) innovative. FB (the site) is not it but to me if they did that, that could be a different company entirely...lol. Unless they pull a rabbit out of their hat and create something that actually can be sold (not defrauding companies out of their advertising dollars), FB (the company) has nowhere to go but down. I think the first day or two of this stock trading confirms this. The stock could've easily bombed so hard the first day no one would take it serious right now, if the banks didn't manipulate it, that is.
 
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