The 180-day period (6 months) after a company goes public during which officers and insiders are restricted from selling stock. Thus these insiders have incentive to see the share price as high as possible after 6 months.
The lead underwriter typically restricts insiders from selling their shares for a period of time - usually 180 days -- from the effective date of the offering. However, the lead underwriter has the option of lifting the lock-up period earlier.
A period of time, typically 180 days, directly after an initial public offering where the lead underwriter restricts insiders from selling their shares. Also known as a lock-down period.
The time period after an IPO when insiders at the newly public company are restricted by the lead underwriter from selling their shares.
The period an investor must wait before selling or trading company shares subsequent to an exit -- usually in an initial public offering the lock-up period is determined by the underwriters.
The period of time that certain stockholders have agreed to waive their right to sell their shares of a public company. Investment banks that underwrite initial public offerings generally insist upon lockups of at least 180 days from large shareholders (1% ownership or more) in order to allow an orderly market to develop in the shares. The shareholders that are subject to lockup usually include the management and directors of the company, strategic partners and such large investors. These shareholders have typically invested prior to the IPO at a significantly lower price to that offered to the public and therefore stand to gain considerable profits. If a shareholder attempts to sell shares that are subject to lockup during the lockup period, the transfer agent will not permit the sale to be completed.
A period of time when investors are unable to exit an investment. Lock-ups are common for funds that are designed as mid-to-long-term investments.
