• Triton

The expiration of the share lock-up period

In his article for the Financial Post, Victor Ferreira highlights the impact on share price of the expiration of insider lock-ups on recent IPOs including Beyond Meat, Zoom Video Communications, and Crowdstrike. In doing so, Ferreira cites Triton's Rett Wallace; "The lock-up may appear to have a negative effect on stocks, but Triton Research co-founder Rett Wallace said it’s crucial for an IPO to include one. It allows companies to put their focus on the launch itself and on establishing a long-term shareholder base without worrying about how many private market investors are going to dump the stock, he said. 'The nerdy academic thing to say is this is why we have lock-ups,” Wallace said. “Do you want to have (a sell-off) happen 180 days after the public debut or do you want it to happen all at once?'" Link to article in the Financial Post - HERE