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Twitter stock sees slump as lock-up expires

Twitter’s stock sank to a low after a post-IPO lock-up period preventing employees and early investors from selling expired.
Oklahoman Published: May 7, 2014
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Twitter’s stock sank to an all-time low after a post-IPO lock-up period preventing employees and early investors from selling expired Tuesday.

Lock-up periods prevent company insiders from selling stock following an initial public offering. CEO Dick Costolo and co-founders Jack Dorsey and Evan Williams have said that they had no plans to sell their stock when the lock-up expired, 180 days after Twitter’s initial public offering.

Still, Twitter’s stock plunged nearly 18 percent to close at $31.85 on Tuesday. Earlier, its shares hit their lowest point ever at $31.72. Trading volume was unusually heavy.

Associated Press