4 ms·
There's a what, another what, and a third what, but no real "why". Yes, the lockup period ended, but plenty of company's stock prices have been just fine after
by goeric 12y ago
There's a what, another what, and a third what, but no real "why". Yes, the lockup period ended, but plenty of company's stock prices have been just fine after lockup periods expired.
- arasmussen 12y agoOnce the lockup period expires many people have to sell a ton of shares to cover the taxes they have to pay on all the shares they just received. Say you make a few million on Twitter stock because you joined 3 years ago. Unless you've got a million bucks cash sitting around you're gonna have to sell some shares to afford the taxes. The combination of everyone doing this at the same time is the "why".