Jump to content
ATX Community

Does IPO lock up period affect LTCG?


MAXW
 Share

Recommended Posts

Client is questioning whether or not the IPO lock up period has any effect on LTCG.

My thought is that the one year period begins on the day client receives stock, whether able to dispose of it or not.  

Link to comment
Share on other sites

An IPO lock-up is period of days, typically 90 to 180 days, after an IPO during which time shares cannot be sold by company insiders. Lock-up periods typically apply to insiders such as a company's founders, owners, managers, and employees but may also include early investors such as venture capitalists.

Link to comment
Share on other sites

1 hour ago, cbslee said:

A Lockup Period is an Investment Marketing Device which is not required by the SEC and has no tax implications.

Yes, I agree, just needed confirmation.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
 Share

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...