Hacker News Reader

What is expected to happen when the lockup expires?

My guess is that the price drops because of so many employees selling at once, but I don't pretend to understand finance.

View on HN

Right, exactly, it's a supply and demand thing. You have X shares trading on the market, and all of a sudden you have something like 3 or 4 * X shares trading hands. Unless there are, all of a sudden, a commensurate number of new share purchasers, it'll drive the price down.

Reply on news.ycombinator.com