For more information, please see our Subsequent S-1/As will announce any changes to the lock-up period(s). Speculators may prefer to simply buy calls or puts, depending on which direction they expect the stock price will go. Initial Public Offerings: Lockup Agreements | Investor.gov The semi-strong form defines known information to be all publicly available information. Blackstone Secured Lending Fund (BXSL) IPO & Lock-Up Expirations Unfortunately, that could create false perceptions that negatively impact the company for no legitimate reason. The public can learn about a company's lock-up period(s) in its S-1 filing with the SEC. To find good ideas for stocks trading at attractive valuations, visit TipRanksBest Stocks to Buy, a newly launched tool that unites all of TipRanks equity insights. Corebridge: Valuation Improving Ahead Of IPO Lock-Up Expiration Lock-up periods typically apply to insiders such as a. Private companies are typically owned by founders, employees, venture capitalists . Visit a quote page and your recently viewed tickers will be displayed here. However, those optimistic owners may still want to sell shares after the IPO in an effort to gain liquidity. The theory goes on to express that any new information is immediately factored into the stock price, thus eliminating the opportunity for individual or institutional investors to time the market. U.S. securities laws require a company using a lockup to disclose the terms in its registration documents, including its prospectus. . This has opened up the quiet period to additional as the definition of free and fair communication continues to evolve. Odd Burger Corp. | IPOScoop In most cases, the stock will drop when there's a lot of supply of shares than the overall demand. The article will also review why lock-up periods are needed, if they are legally required, how they differ from the quiet period expiration date, and perhaps most importantly and controversially do they really work? The quiet period is a legally mandated period of time that precedes and follows a companys initial public offering (IPO). Proponents of the EMH argue that fundamental and technical analysis is irrelevant to generating abnormal stock returns. In some cases, certain company insiders may have to wait for a period of time after the lock-up period expiration to sell their shares.