IPOs, Initial Public Offerings: pre & post IPO

Lockup date explained

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On the lockup expiration data (usually 180 days after the IPO) shares can be sold by insiders without an SEC filing.

Sometimes the extra stock supply causes a decline in the stock.

Twitter is an example. Their lockup end date was May 6, 2014.  May 5 the stock closed at $38.72. May 6 it closed at $31.80, down 18%.

A word of caution. What happened to Twitter is an example, not necessarily a general rule.

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