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A comment on Twitter Prices IPO Above Estimates at $26 Per Share, Valuation Up to $18B. Parent comment

Re:Twitter Prices IPO Above Estimates at $26 Per Share, Valu... by j10t on Wednesday November 06, 2013 @08:35PM (#6686896)
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.

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Re:Twitter Prices IPO Above Estimates at $26 Per Share, Valu... by aaronbrethorst on Wednesday November 06, 2013 @11:55PM (#6687627)
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.
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