The market for initial public offerings started the year red-hot, with unicorns like Uber and Pinterest raising billions in their public debuts. But after a series of IPO flops and a pulled listing from co-working giant WeWork, newly public firms have started lagging behind the broader market — and the pain could get even worse. When companies go public, insiders such as employees are subject to a lockup period, or a specific set of time after the IPO when they can't sell their shares.
The market for initial public offerings started the year red-hot, with unicorns like Uber and Pinterest raising billions in their public debuts. But after a series of IPO flops and a pulled listing from co-working giant WeWork, newly public firms have started lagging behind the broader market — and the pain could get even worse. When companies go public, insiders such as employees are subject to a lockup period, or a specific set of time after the IPO when they can't sell their shares.
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