Lockup Expiration
The end of the contractual lockup period (typically 180 days after a traditional IPO) on which all pre-IPO holders become legally able to sell their shares. The supply of sellable shares jumps overnight from the IPO float to the full diluted share count, often a 3-5x increase. Empirically, lockup-expiration days see elevated trading volume and frequent price weakness as a chunk of insiders monetize their first liquidity window. The exact magnitude varies by deal, but the DIRECTION is one of the most well-documented patterns in equity microstructure.
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