Facebook shares rose sharply Wednesday as company employees who became eligible to sell huge chunks of stock opted instead to keep most of their holdings.
The employees became eligible to sell some 800 million shares in the social networking giant as the lockup imposed on their shares expired six months after the company's IPO in May.
Investors had feared that the expiration would cause a glut of shares on the market, causing prices to drop, but were relieved when it appeared that most employees decided not to sell.
The company went public in May at a price of $38 a share and has since seen its value fall by half as investors fret about the site's ability to monetize its huge user base. It was trading at $21.60 in midday trading Wednesday, up some 8 percent on its opening price.
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