12-28-2021, 11:46 AM
Now I have no idea how those IPO lock-up things work. Could it be an opt-in thing? So the directors of the company etc sign a legally binding agreement stating they won't sell until X date?
I've never bought at IPO time but I have received offers. You don't have to be a director to buy, just shell out a large enough chunk of cash. And you can't sell those shares (usually) for a period stipulated in the IPO offer. I've never seen a form, just a document detailing the offer which you agree to the terms of by buying, just like whenever I click "buy" in Fidelity I'm agreeing to their terms.
I just don't know what would prevent a company announcing a graduated dividend policy as the OP suggested. Tracking it would be a nightmare, especially in these days where most shares are technically owned by the brokerage and not held in name. But I don't see why they would be prevented from doing so either so long as proper notice was given.
I don't see it being in the interest of a company to do it anyway. Why should they care how long shares are held?
I've never bought at IPO time but I have received offers. You don't have to be a director to buy, just shell out a large enough chunk of cash. And you can't sell those shares (usually) for a period stipulated in the IPO offer. I've never seen a form, just a document detailing the offer which you agree to the terms of by buying, just like whenever I click "buy" in Fidelity I'm agreeing to their terms.
I just don't know what would prevent a company announcing a graduated dividend policy as the OP suggested. Tracking it would be a nightmare, especially in these days where most shares are technically owned by the brokerage and not held in name. But I don't see why they would be prevented from doing so either so long as proper notice was given.
I don't see it being in the interest of a company to do it anyway. Why should they care how long shares are held?