Here's Why Rumble Stock Dropped Today
Shares of video-streaming platform Rumble (NASDAQ: RUM) dropped on Monday following the expiration of its lock-up period over the weekend. At the close of the session, Rumble stock was down by about 12.7%.
When Rumble went public, many of its shares were held by insiders, and therefore subject to a lock-up period during which they couldn't be sold. This is common for newly public companies. It prevents insiders and early investors from hyping up the stock to retail investors early before dumping their positions.
Rumble's lock-up included more than 140 million shares held by founder and CEO Chris Pavlovski, representing 44.6% of shares outstanding, which is an unusually high percentage. That lock-up period expired on Saturday.
Source Fool.com
