Twitter sinks to new low as ‘lockup’ expires
Published on May 7, 2014 5:55 AM
NEW YORK (AFP) - Twitter shares plunged to new lows on Tuesday, under pressure after the expiration of the so-called lockup period, which banned sales by company insiders after its public offering.
The stock sank 17.8 per cent to close at US$31.85, the lowest level since the Twitter initial public offering (IPO) last November.
Under US securities lockup rules, some insiders were barred from selling for a period of time after the social network’s IPO.
The lockup expired on Tuesday, but Twitter co-founders Jack Dorsey and Evan Williams and chief executive Dick Costolo indicated they have no short-term plan to sell their shares.
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