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IPO Lock-Up
(redirected from IPO Lock Up)

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IPO Lock-Up
A practice in a publicly-traded company that forbids management and large stockholders from selling their shares for a period of time following an initial public offering. Depending on the company, the IPO lock-up usually lasts 90 to 180 days. It exists to ensure that the market is not flooded with shares in the company at any given time, which would increase supply and cause a drop in price. Large shareholders selling their shares may also be seen as equating to a lack of confidence in the company, triggering a panic sell.


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Although the company cannot predict how many shares will be sold and shareholders' intentions may change based on personal circumstances and market conditions, Garmin currently expects that only a relatively small number of shares subject to the IPO lock up will be sold in the near term following the lock-up expiration.
 
 
 
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