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Facebook’s stock price has been cut in half since the fanfare of the IPO hit the market three months ago. With this drop, both employee morale and employee stock issues have plummeted. This article provides some insight into what the future holds for those holding Facebook stock.

1. What is an employee lock-up release? What does trading stocks sideways mean?
2. According to Blodget, Facebook stock is not expected to bottom out until one of three things happens. What are these?
3. If you are an employee holding Facebook stock, which company’s long-term stock action does Blodget suggest you study?

Blodget, H. (2012). DEAR FACEBOOK EMPLOYEES: Here’s the Truth About Your Stock Price. Business Insider, August 17 (Retrievable online at