I think that would be shorting the stock, which is financially betting against their stock. It’s worth mentioning that shorting a stock has potentially infinite risk.
I remember reading somebody saying they were going to buy it and put a sell order for when it hit 69. Just looked and too bad for them. It seems to have maxed out at 68 dollars.
His 500,000 class a shares were a part of the ipo offering, so they were directly sold with the ipo. He still has 4.1 million class b shares which have greater voting rights than class a shares. So the people in this thread saying he’s sold all of his stock aren’t correct, though he did sell all of his class a shares that are being traded in the public market for the ipo. It’s all in sec filings as part of the ipo. You can see here who sold as part of the ipo and how much, and where all the ipo shares are coming from. Some were created to raise money for the company, others were already existing shares being sold by those who already held shares before the ipo. They wouldn’t be able to sell after the market actually opened, that’s where lockup periods come in, and it’s 180 days in this case. The sale price of these shares was negotiated as part of the ipo before it was trading on the exchange. Now any still held are locked up for that period.
They wouldn’t be able to sell after the market actually opened, that’s where lockup periods come in, and it’s 180 days in this case.
That must be part of the amendments then, because when I looked at the Reddit S-1 about three weeks ago, the lockup for all share classes was at three days, very brief. I looked it up specifically because I wanted to know how soon Spez could get to the dump part of the pump-n-dump, and here we are.
I’m not an expert, I could be wrong or misreading it. The wording isn’t straight forward. This is the section that mentions it:
In connection with this offering, we and all of our directors and executive officers, the selling stockholders, and certain other record holders that together represent approximately 82% of our outstanding Class A common stock and securities directly or indirectly convertible into or exchangeable or exercisable for our Class A common stock are subject to lock-up agreements with the underwriters agreeing that, subject to certain exceptions, without the prior written consent of Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC, on behalf of the underwriters, we and they will not, in accordance with the terms of such agreements during the period ending on the opening of trading on the earlier of (i) the third trading day immediately following our public release of earnings for the quarter ending June 30, 2024 and (ii) 180 days after the date of this prospectus (such period, the “Lock-up Period”): (1)offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right, or warrant to purchase, lend, make any short sale, or otherwise transfer or dispose of, directly or indirectly, any shares of our Class A common stock and securities directly or indirectly convertible into or exchangeable or exercisable for our Class A common stock; (2)enter into any swap, hedging transaction, or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of our Class A common stock, whether any such transaction described above is to be settled by delivery of our Class A common stock or such other securities, in cash or otherwise; (3)publicly disclose the intention to take any of the actions restricted by clause (1) or (2) above; or (4)make any demand for, or exercise any right with respect to, the registration of any shares of our Class A common stock or any security convertible into or exercisable or exchangeable for our Class A common stock.
If you control f to “lock-up” there’s more context too.
Yeah, that’s the section, at least for Class A. I think I’m the one who misread, and took “third trading day immediately following our public release of earnings for the quarter ending June 30, 2024” for “third trading day immediately following our public release blah blah blah” (the IPO).
I need to take more time when I’m sounding out the words, lol. Thank you for looking and taking the time to cite the section.
Pump and dump. They sold all those shares to shareholders and they are going to answer to them now. They stopped listening to the users a long time ago. Enshittification is inevitable.
It’s already fairly enshittified. The discourse has really gone downhill over the past few years. Remember how good the AMAs used to be? Or the AskReddit threads that were full of interesting stories?
Greedy little pigboy was always going to get his cut, that was the whole idea. Build something juust big enough to get bought out, and if that doesn’t work, sell the parts as unethically as possible.
I look forward to him thinking he’s a big dick player now and getting absolutely chummed by the real sharks
This only works to fuck short sellers, not people who already have shares. If you buy shares right now, you’re not only screwing yourself while the other bag-holders minimize their losses by selling, but keeping the stock overvalued until greedy little pigboy can dump the rest of his stocks.
If a company takes its stock public, the shares sold generate cash which is held by the company selling them, and used to build the business. Nobody who bought them, including the insiders, is really forbidden from selling them (except insofar as insider trading laws apply), but if an insider sells shares this early it indicates a deep distrust by the seller of the underlying value of their own company. Doing so while letting outside investors spin is therefore unethical because it signals that the people who built the company are planning to abandon it and let the stock tank.
See also: lock-up period, which is not required during an IPO (news to me!) but the absence of a lock-up period sure seems like a red flag someone should have noticed. Although, I suppose, many people did.
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