| ▲ | echrisinger 6 hours ago |
| Typically this would be prohibited (at least as an employee) |
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| ▲ | cj 6 hours ago | parent | next [-] |
| If you have holdings that are locked up, are you allowed to short stock or use options to hedge your position? |
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| ▲ | unknownfuture an hour ago | parent | next [-] | | No. Typically lockup agreements prevent any kind of trading of derivative or synthetic positions (think: shorts, swaps, options, etc). | |
| ▲ | BobbyJo 5 hours ago | parent | prev [-] | | Almost certainly, outside of standard trade restriction windows. I don't think they have any control over what you do in the market outside of preventing insider trading. | | |
| ▲ | unknownfuture an hour ago | parent [-] | | Yes they absolutely can and do. Lockup provisions are contractual and typically quite strict. |
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| ▲ | axus 6 hours ago | parent | prev | next [-] |
| I'm not an employee :) |
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| ▲ | s1artibartfast 6 hours ago | parent | prev [-] |
| Sorta, there are no SEC requirements for lockup. It is all depends on the agreement between the IPO company and the IPO underwriters syndicate. Spotify and Slack notably skipped lockup entirely. Goldman Sachs, Morgan Stanley, BoA, ect are the ones who set the IPO lockup terms based on their risk and exposure post IPO. Indexes, exchanges, underwriters, ect are all private institutions who mostly can and do set their own rules. |
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| ▲ | fsuts 5 hours ago | parent [-] | | The terms are public so you can read them Something like 20% can be sold after the q2 results are released | | |
| ▲ | s1artibartfast 4 hours ago | parent [-] | | I am fully aware of the terms. There are lots of schedules.
I was speaking to the origins of "prohibitions". It is also worth noting that typical lockup contracts can be waived early at the sole discretion of the underwriters. |
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