Liquidity: Liquidity risk for cash alternatives takes two basic forms: lock-ups and liquidity crises.
Meanwhile, Facebook shares spiked Wednesday after lock-ups expired on a massive block of 777 million shares.
Often, clients face disincentives to withdrawing their money, such as lock-ups or forced realisation of capital gains.
Or to be able to count to the date when the lock-ups expire.
FORBES: The Fall In Facebook's Share Price Doesn't Make Sense
In some cases, there can be long lock-ups and complex transition issues if the institution decides to terminate the advisor.
FORBES: CIO Outsourcing: Questions Investment Committees Need to Ask
This clearly makes some worried about what will happen when the next two (one of them much larger) lock-ups expire.
FORBES: The Fall In Facebook's Share Price Doesn't Make Sense
Lock-ups and valuation vaguaries will delay the day of reckoning that long.
On the other hand, some may argue that underlying liquidity may be enhanced as lock-ups instituted as a defense to registration are eliminated.
In addition to the lock-ups that ended in August and on Monday, more than 770 million Facebook shares will be freed from any selling restrictions in mid-November, further diluting the market.
FORBES: Sheryl Sandberg Finally Gets Liquid On Her Giant Facebook Stake But Is Still No Billionaire
Hamilton's attempt to put together the perfect lap was not helped by several lock-ups, with the McLaren driver coming unstuck at the Bico de Pato and in the Senna S combination.
Lock-ups are the easiest for investors to understand and manage: They are upfront requirements for how long an investment must be held, or how much notice an investor must give before liquidating.
Guys like Dustin Moskovitz, who was there at the beginning, have dumped material amounts of Facebook stock after lock-ups expired while newer employees, like David Spillane, have sold a big percentage of their Facebook holdings.
FORBES: The Mother Of All Facebook Stock Lock-Up Expirations Is Here
Munster duo Keith Earls and Alan Quinlan were surprise call-ups, while Welsh wing Leigh Halfpenny and England lock Simon Shaw also made the squad.
应用推荐