lock-up

Groupon shares tank as insiders dump stock

Groupon shares dropped nearly 9 percent Friday as insiders took their first opportunity to cash in on their stock.

Groupon shares fell 8.7 percent to $9.72 in early trading on Friday. The company went public in November at $20.

The decline is largely attributed to the expiration of the insider lockup agreement, or the period after an initial public offering when insiders are unable to sell their stock. That expired on Friday, allowing insiders to freely cash out, the Chicago Tribune pointed out.

Today's sell-off represents a cautionary tale for Facebook, which just went public last month … Read more