Why Rumble Stock Is Plummeting This Week
Rumble (NASDAQ: RUM) stock is sinking this week following the expiration of its lockup period. The company's share price was down 23% from last week's market close heading into this Friday's daily trading session, according to data from S&P Global Market Intelligence.
The lockup period for Rumble stock expired on Sept. 19, opening the door for insiders at the company to sell shares of its stock. The streaming-video specialist was taken public through a merger with a special purpose acquisition (SPAC) company in September 2022.
When a company goes public, there are often limitations put in place that prevent company insiders from selling their shares shortly after they hit the market. The duration of time that prevents insiders from selling shares is known as the lockup period.
Source Fool.com
