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The date when post-IPO trading restrictions on insider shares end, typically 90–180 days after a company goes public. After this date, founders, employees, and early investors can start selling — a known supply event that often affects the stock price.
Why It Matters
Lockup expiration is one of the most-discussed post-IPO events because it dramatically increases the available share supply. The stock can fall as insider selling hits the market — Meta hit its low immediately after its first lockup expired in 2012. But the direction isn't guaranteed: Meta's BIGGEST lockup (Nov 2012, ~800M shares) actually rallied +10% on the day. Path-dependent.
Key Points
- Most lockups run 180 days post-IPO but can vary — SpaceX, Anthropic, OpenAI all have their own structures.
- Companies often stagger multiple lockup expirations to soften the supply shock.
- 'Lockup-expiry trades' are a real strategy but historically inconsistent — Meta's first lockup tanked the stock; its biggest one rallied it.
Related Terms
Common Questions
The date when post-IPO trading restrictions on insider shares end, typically 90–180 days after a company goes public. After this date, founders, employees, and early investors can start selling — a known supply event that often affects the stock price. Lockup expiration is one of the most-discussed post-IPO events because it dramatically increases the available share supply. The stock can fall as insider selling hits the market — Meta hit its low immediately after its first lockup expired in 2012.
Lockup expiration is one of the most-discussed post-IPO events because it dramatically increases the available share supply. The stock can fall as insider selling hits the market — Meta hit its low immediately after its first lockup expired in 2012. But the direction isn't guaranteed: Meta's BIGGEST lockup (Nov 2012, ~800M shares) actually rallied +10% on the day. Path-dependent.
Most lockups run 180 days post-IPO but can vary — SpaceX, Anthropic, OpenAI all have their own structures.
Companies often stagger multiple lockup expirations to soften the supply shock.
'Lockup-expiry trades' are a real strategy but historically inconsistent — Meta's first lockup tanked the stock; its biggest one rallied it.