SpaceX insiders will get to sell shares earlier than usual after the IPO
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- The company built in a series of release valves that allow insiders to sell portions of their stock in the weeks and months after the IPO.
- Here's how SpaceX structured its lock-ups, according to the S-1 filling.
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When most companies go public, they follow a simple rule: insiders can't sell their shares for 180 days after the IPO. Space X is taking an unusual approach that could allow pre-IPO investors to sell sooner.
The company built in a series of release valves that allow insiders to sell portions of their stock in the weeks and months after the IPO. This phased approach to insider selling accomplishes a few things. It prevents potential pressure on the stock when a lock-up is lifted and everyone can sell at once. And perhaps, even more noteworthy: It also could increase the float – or shares available to trade – sooner, which has implications for faster inclusion in the Nasdaq 100.