How Lockups Can Leave You Out In The Cold

Beware: When IPO insiders sell, it can swamp your shares

Akamai Technologies went public last October and became an immediate sensation. Demand for shares in the Internet-infrastructure company was nearly insatiable. Just 9 million shares were offered at $26 apiece, and buyers pushed the price to $145 on the first day. The stock even touched $345 a share in late December, but like most Net stocks, it got crushed in the spring, falling to $60 in late May. Then Akamai started to recover, but in late July, its stock quickly plunged from above $100 a share to below $80, where it has been stuck since.

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