Stock lock up period8/31/2023 ![]() This is to prevent a surplus of shares from flooding the market and causing the stock price to plummet. Some questioned whether its lackluster performance had anything to do with Robinhood's hybrid auction-style debut, a lack of lock-up period for 15% of shares held by employees and others, or concerns over regulatory headwinds. A lock-up period refers to a predetermined time frame following a companys Initial Public Offering (IPO), during which insiders such as founders, employees, and early investors are prohibited from selling their shares. ![]() The stock sank as much as 12% below its IPO price during its first day of trading on the Nasdaq. Investors are keeping a close eye on the stock following Robinhood's public debut last Thursday. Last week Cathie Wood's Ark Innovation ETF ( ARKK) scooped up about 4.9 million shares of Robinhood, according to Bloomberg data. High profile investments in Robinhood may also be driving the price higher. "The upward stock price pressure in HOOD is not a short squeeze for the simple reason that there has not been enough time for a large short position in HOOD to be accumulated," he added. "While there is some short side activity in HOOD, it is the long side which is main driver of its stock price volatility," Ihor Dusaniwsky of S3 Partners told Yahoo Finance. While short squeezes have often initially driven up "meme" stocks in the past, Robinhood's move is not driven because of a short covering. ![]() On Wednesday Fidelity's real time order data was showing Robinhood as a top traded stock, behind Advanced Micro Devices ( AMD) and AMC ( AMC), two stocks followed by WSB members. ![]() The stock's comment volume has spiked over the last two days. Robinhood is one of the most mentioned stocks on Reddit's WallStreetBets, according to SwaggyStocks. Retail interest could be a contributing factor for the upward move. An initial public offering (IPO) lock-up period is a contract provision preventing insiders who already have shares from selling them for a certain amount of time after the IPO. ![]()
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |