Re:Why Twitter's stock price dropped 18% today
by goeric on Tuesday May 06, 2014 @04:45PM
(#7706978)
There's a what, another what, and a third what, but no real "why". Yes, the lockup period ended, but plenty of company's stock prices have been just fine after lockup periods expired.
[ Parent
| on HN ]
Re:Why Twitter's stock price dropped 18% today
by arasmussen on Tuesday May 06, 2014 @05:18PM
(#7707137)
Once the lockup period expires many people have to sell a ton of shares to cover the taxes they have to pay on all the shares they just received. Say you make a few million on Twitter stock because you joined 3 years ago. Unless you've got a million bucks cash sitting around you're gonna have to sell some shares to afford the taxes. The combination of everyone doing this at the same time is the "why".