Why SoFi Technologies Stock Fell 19.5% in July
Shares of SoFi Technologies (NASDAQ: SOFI) fell 19.5% in July, according to data from S&P Global Market Intelligence. There actually wasn't much news about the company. But this newly public stock hit the markets on June 1 via a special purpose acquisition company, and after 20 trading days, the company's unique lockup expiration provision was triggered, allowing early investors to sell their stock sooner than the typical 180-day period. That was apparently enough to pull down shares in July after an exciting June.
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Lockup provisions for newly public companies are usually for a period of 90 to 180 days after a stock begins trading, during which insiders and early investors are prevented from selling stock on the open market.
Source Fool.com
