| I'll start by saying I'm not surprised employees get the shaft as I've spent countless hours analyzing the IPO process looking for trading advantages and I still don't fully understand it:( Quite often the choice of a lockup is out of the companies hands, many states require it. The SEC however doesn't require a lock up, they just recommend it. http://www.sec.gov/answers/lockup.htm http://www.sec.gov/answers/bluesky.htm I'm guessing most companies include language about this when you join and get your first option grant. They usually don't go around to each employee and get them to sign something before an IPO as their initial grant language often covers this. if they do please let me know:), Actually I take that back, that would probably be insider knowledge, please don't tell me:) Rule 7-G http://www.law.cornell.edu/cfr/text/17/230.701 covers this if you feel like reading some really dry material:) It is possible for the company to file an S-8 registration form to allow some shares to be sold but many companies don't file this form. Here is a good paper on analyzing the trading of locked up shares. http://pages.stern.nyu.edu/~eofek/PhD/papers/FH_The_JF.pdf |