3 ms·
What is expected to happen when the lockup expires? My guess is that the price drops because of so many employees selling at once, but I don't pretend to under
by j10t 13y ago
What is expected to happen when the lockup expires?
My guess is that the price drops because of so many employees selling at once, but I don't pretend to understand finance.
- aaronbrethorst 13y agoRight, exactly, it's a supply and demand thing. You have X shares trading on the market, and all of a sudden you have something like 3 or 4 * X shares trading hands. Unless there are, all of a sudden, a commensurate number of new share purchasers, it'll drive the price down.