Client: Avoid the Dip from IPO Lockups (Infographic)

Posted on Jun 28 2012 - 1:16pm by CONTRIBUTOR

Editor’s Note: Guest Author Pradeep Yadav, a technology lover, analyzer and  love reporting about different technologies.

Wealthfront analyzed technology IPOs from the year 2000-2011 in order to draw conclusions about the impact of a lockup on stock trading and price. A flood tide of shares is hitting the market in May and June, as a number of the high-profile tech IPOs from the fall emerge from lockup periods, If you’re one of the employees of the 28 companies whose lockups are expiring in May or June, you’re wondering how to diversify your portfolio and when to sell.

Employees of recently Public companies need to decide how to see to diversify their portfolios after IPOs. We averaged all the stock prices and normalized them on a scale of 100. Here’s what happens to those stocks. The company IPOs to chart “The Dip” that consistently has a price dips the first day after the Lockup ends.

Here’s the Infographic compiled by Wealthfront that lets you understand the IPO dips from over the past eleven years:

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