Slack employees offloading shares before it goes public?
According to this, Slack employees are trying to sell as much as half their stakes before the company starts trading. https://www.businessinsider.com/slack-employees-have-sold-stakes-in-the-company-private-market-2019-6 Are you guys worried the stock is going to tank or what?
Business Insider
This is exactly why lockout periods exist. Of course employees are going to dump large amounts of stock, putting sell pressure on the stock and tanking the price while it’s still volatile.
That is actually incorrect. IPO are actually mostly beneficial only for the ones that buy before, since for 6mo (the lockup period) there will be a forced limited number of shares available on the market, so the supply available is limited - that’s why usually folks see a pop/drop in the first day, since the market “corrects” that initial negotiated price.
They’re hedging their bets. After an IPO you’re in a freeze period for 6-12 months and having all your eggs in the public market (especially right now) isn’t smart. Sure, if the stock goes through the roof they’re going to lose out on some upside but they’re guaranteeing themselves something right now.
Is there a lockout period even with direct listings like theirs?
Almost always, usually 6 months, sometimes a year