Insiders Freed from Post-IPO Restrictions (WSJ)

Underwriters more willing to end lockup agreements early.

Underwriters of initial public offerings are more frequently easing lockup restrictions that limit corporate insiders’ sale of their shares for a set period after the IPO, the Wall Street Journal reports. It cites underwriters’ allowing investors and managers in ExactTarget to sell some of their shares yesterdayy, before the lockup period had ended. Such lockup agreements are intended to bolster the stock’s price in the wake of the IPO, but the Journal notes that ExactTarget’s shares rose 1.1% yesterday.

Underwriters have allowed 10 lockup agreements to expire early this year.


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