Facebook insider sales are huge red flags [View all]

[marmar]

By John Shinal


SAN FRANCISCO (MarketWatch) — If you had inside knowledge of a hot investment that you expected to be worth more in six months or even three months, why would you sell your stake this week?

That’s a question retail investors should be asking themselves now that the level of stock-dumping among Facebook Inc. insiders has reached a level that can only be described as “Grouponesque.” Here’s just how much certain Facebook insiders are selling.

With the additional sales planned this week, early investors are now selling more Facebook stock — and pocketing more money from the offering — than the social network itself.

That’s similar to what happened during several early funding rounds of Groupon Inc., whose stock is now trading far below its IPO price. .................(more)

The complete piece is at: http://www.marketwatch.com/story/facebook-insider-sales-are-huge-red-flags-2012-05-17