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Here's Why Lemonade Stock Fell Hard on Wednesday

TheMotleyFool

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Here's Why Lemonade Stock Fell Hard on WednesdayPhoto, wide shot, wide-angle lens, soft focus, Reinsurance company, Blue hour, twilight, cool, ISO1200, slow shutter speed, photo by Sebastião Salgado: https://oaidalleapiprodscus.blob.core.windows.net/private/org-IbuNdCATsFaPOITjFOv2kJh3/user-AXaxqjBUW45D8BadJEo9mUpW/img-bSRc7PrRT00tZTDNf9SggMTD.png?st=2023-05-06T18%3A48%3A49Z&se=2023-05-06T20%3A48%3A49Z&sp=r&sv=2021-08-06&sr=b&rscd=inline&rsct=image/png&skoid=6aaadede-4fb3-4698-a8f6-684d7786b067&sktid=a48cca56-e6da-484e-a814-9c849652bcb3&skt=2023-05-06T00%3A38%3A49Z&ske=2023-05-07T00%3A38%3A49Z&sks=b&skv=2021-08-06&sig=3seGuy7NQJX9RXUOWr6XArANokWXlKqwnEJxEHfdbSY%3D

Shares of insurance company Lemonade (NYSE: LMND) fell a painful 13% on Wednesday after less than one week on the public markets. What could have possibly happened to crash this stock?

In fact, nothing happened with Lemonade today. Stocks tend to be volatile after an initial public offering (IPO), not necessarily because of news. After an IPO, companies are subject to a quiet period. So don't expect any news from Lemonade in July. Nevertheless, it will probably be a bumpy ride.

Image source: Getty Images.

Source Fool.com

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