I have a question regarding how to benefit from major price movements after the end of a lock-up period post IPO.
I have seen that in many cases there are no extraordinary movements in the prices in the day the lock-up period ends, although in some cases there is extreme movements. Like those recently in UBER & Beyond Meats.
My questions are:
- How do I know how many shares are locked-up, that could potentially be sold of post Lock-up period?
- My guess is that the locked-up shares should approximately be equal to Outstanding Shares - Free Float shares???
- If owners etc want to sell shares that have previously been locked up, do they have to give public notice?
- I have also seen that prices sometimes skyrocket during the day that the lock-up period ends. Is there a rational explanation for a movement like this?
- Can insiders buy shares during the lock-up period or are they only excluded from selling?