Here's What Retail Investors Need to Know About SpaceX's Lockup Cliff
SpaceX will have more liquidity, but that's not necessarily good for prospective investors.
Overview
When a company has its initial public offering (IPO), its shares begin trading on the open market, and the shares that insiders (such as investors, employees, and founders) own officially have value. However, those insiders aren't allowed to sell shares immediately; they have to wait until the designated lockup periods end.
Space Exploration Technologies (NASDAQ: SPCX), better known as SpaceX), executed the largest (and arguably most hyped) IPO in stock market history, initially trading with a $1.77 trillion valuation. And after being invested and working for years or decades, you can bet plenty of insiders are ready to cash in and make moves on that house or dream car they've been eyeing.
Details
Here's what you should know about SpaceX's lockup cliff.
Source
Originally published at www.fool.com.