After months of watching Snap’s volatile ride on the stock market from the sidelines, some insiders will be allowed to sell their shares Monday.
Known as the “lockup period,” employees and early investors of companies are generally restricted from selling their shares during the initial months following an IPO. The duration of this period varies and in Snap’s case, 150 days post-IPO was determined to be the appropriate timeframe for the first wave of shares, with a second wave coming later in August.
The Snapchat parent’s stock has been trading down, partly in anticipation of this expiration date. But just because insiders can sell their shares, it doesn’t mean they will.
One analyst, Scott Devitt at Stifel Nicholas, believes this has all been overblown. Earlier this…