5 Tips for Investing in IPOs
By
siliconindia | Wednesday, June 13, 2012
Consider waiting for the lock-up period to end
There is something like a confinement period which is a legal contract between the sponsors and the insiders of the company not letting them sell any shares of stock for a certain period. For instance Jim Cramer who became famous from TheStreet.com and the CNBC program known as ‘Kudlow and Cramer’ was forbidden to sell his stocks because of the lock up period. So at this point it’s better to wait until the insiders are free to sell the shares because if one continues to hold stock after the expiration of the lock up period and that indicates the sustainable future of the company.

