When a company does an IPO, there is legislation (along with conventions) around having a portion of the vendor's holdings escrowed (which means, unable to be sold on-market). Escrow periods usually range from 12-24 months. Once escrow periods expire, the owner of the escrowed shares is free to sell them on-market. In some cases, it can create a fantastic buying opportunity, if you have a motivated seller (e.g. retiring business owner) who sells the price down low. On the other hand, if you have a vendor who remains on the board of the listed company and is motivated to see the business succeed, then it may make no difference at all.
LAA Price at posting:
29.5¢ Sentiment: None Disclosure: Not Held
