Snap expects some IPO investors to make year-long commitments
Reuters ----- Snap Inc, owner of popular messaging app Snapchat, disclosed on Monday that it expected investors buying up to a quarter of the shares in its $3.2 billion initial public offering this week to agree not to sell them for a year. While Snap cautioned it had no binding commitments yet from investors accepting such a lock-up period, the disclosure is a sign of confidence from the company in what is expected to be the biggest U.S. IPO since Facebook Inc (FB.O). Lock-up periods help companies moderate stock volatility by preventing company insiders from selling their shares within an allotted time. A year-long lock-up period is atypically long, potentially signifying strong demand for the IPO. To learn more click on the picture below to read the article.