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This is just a general practice that always happens when paying in stock. It's to prevent a massive dump the next day which would tank the share price 'artifici
by bilekas 4mo ago
This is just a general practice that always happens when paying in stock. It's to prevent a massive dump the next day which would tank the share price 'artificially'. Again, rich people's rules.
- bix6 4mo agoOk everyone saying this is how it works but where’s the proof? SpaceX has a 7 day lockup for some people which is abnormal. So clearly the way it’s done isn’t in fact how it’s always done.
- bilekas 4mo agohttps://www.sec.gov/reports/rule-144-selling-restricted-control-securities https://www.sec.gov/reports/rule-144-selling-restricted-cont... > Holding Period. Before you may sell any restricted securities in the marketplace, you must hold them for a certain period of time. If the company that issued the securities is a “reporting company” in that it is subject to the reporting requirements of the Securities Exchange Act of 1934, then you must hold the securities for at least six months
- kyleee 4mo agoWhat’s the lockup period in this case?
- bilekas 4mo agoUm, I honestly don't know for sure, if I'm not mistaken SpaceX has some weird staggered release schedule for employees and early investors, I guess based on their stock dates.
- bix6 4mo agoAre the securities restricted though? I don’t think these would be?
- bilekas 4mo agoAlmost guaranteed to be. The only other way would be to have issued them during the transaction with the Sec. There was no mention of that. 60billion of issued shares would have been mentioned. It's non trivial amount.
- bilekas 4mo ago> SpaceX has a 7 day lockup for some people which is abnormal You might be referring to staff members who have shares ? Their shares are not restricted securities as far as I know, but their internal company policy might affect those, but I'm not 100% certain on that.