In a few weeks the pre-ipo share owners can offload the first batch of their shares (after q2 results release)
So guessing non investors in SpaceX are shorting for this event in expectation of a drop
So guessing non investors in SpaceX are shorting for this event in expectation of a drop
The issue is that this creates a conflict of interest.
In the worst case scenario, as an employee, you can literally do a bad thing to cause the stock to go down. E.g. An engineer can make a bug which blows up a rocket.
So then you could short the stock, bug a rocket, and become super rich.
It's the same issue with athletes betting on their own team - it's trivial to throw the game.
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.
Something like 20% can be sold after the q2 results are released
It is also worth noting that typical lockup contracts can be waived early at the sole discretion of the underwriters.