Modern finance · 1950s–1990s
1972
Insiders' sales are limited
SEC Rule 144 sets how fast insiders can sell, and IPO lockups follow.
In 1972 the SEC adopted Rule 144, setting holding periods and volume limits on how much restricted or insider stock can be sold at a time.
By the 1990s nearly every US IPO also came with a lockup agreement with the underwriters, most often for 180 days, during which insiders don't sell at all.
💡 Why it made sense then
If insiders could sell everything at once, new public investors would be left holding the bag.
🎮 In Journey Shares
A claimed profile's escrowed shares are locked for 180 days, then can be sold only a little each day.
Ideas it gave us
- 📈 Lockup period
A lockup period is a stretch of time after a company goes public, usually 180 days, during which insiders agree not to sell their shares.
Practise with $10,000 in play money
Free. No real money involved.