Facebook founder Mark Zuckerberg will not sell off any of his company stock for one year, according to documents the company filed with the US Securities and Exchange Commission (SEC) filing.
The move aims to bring back investor trust to the nose-diving Facebook shares. Zuckerberg's announcement comes as Facebook stock hits a new low.
"[Zuckerberg] has informed us that he has no intention to conduct any sale transactions in our securities for at least 12 months," read Facebook's SEC filing.
Analyst Rob Enderle of the Enderle Group called the move a message to investors. But he alsoe warned it may backfire.
"Typically executives hold on to their stock because any value increase is taxed at sale and at lower capital gains rates. These share become what funds their retirement and is collateral for loans to fund major purchases," Enderle told V3.
"In this case, however, he is clearly making a statement that he hopes will keep investors from selling off his firm's stock. It may have the opposite effect though as it comes off a tad desperate and if investors see it that way they will likely flee the stock."
At the time of publication, stock in the social networking site had hit an all time low of $17.73 a share, an almost 50 per cent drop from the company's original initial public offering (IPO) of $34 per share last May.
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