Facebook Faces a Key Test on Wednesday

Facebook Inc (NASDAQ:FB) will face another milestone in the period after its initial public offering on Wednesday, when the quiet period barring analysts from banks that underwrote the offering are finally allowed to speak publicly of their research on the firm.

There is a forty day quiet period following offerings in which firms that underwrite IPOs are not allowed to publicly speak out on the firm involved in the offering. It is generally accepted that this move lowers the volatility that can occur in the weeks after a big offering.

On Wednesday the firms...