Facebook Implements Insider-Trading Policy
Facebook has prohibited its employees from selling their shares to other investors, its latest attempt to clamp down on the selling of its stock on secondary markets.
The company announced the new policy last week, say people familiar with the matter. The policy says employees who sell their shares could face disciplinary action or be fired, one of these people said. The new rule also leaves room for the company to open a trading window during which employees would be allowed to sell shares in the future.
Facebook spokesman Larry Yu said the company implemented the “insider trading policy to better comply with insider trading laws and to protect the interests of the company and its employees and shareholders.”