lockdown

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Blackout Period

The period of time during which an employee may not make any changes to his/her employer-sponsored retirement plan. This usually occurs when the plan is being restructured or when administrative changes are being made. For example, a company may institute a blackout period if it is moving management of its retirement plans to a different brokerage. A blackout period normally lasts approximately 60 days. It is also called the lockdown.

lockdown

A prohibition against a firm's employees making changes in the asset composition of their retirement plan. Corporate officials may lock down a retirement plan during a period of administrative changes in the plan. Also called blackout period, quiet period.
Case Study The term lockdown became a familiar component of the finance lexicon following Enron's bankruptcy on December 2, 2001. The company's management had locked down the employees' 401(k) retirement plan five weeks earlier on October 26, when Enron stock traded at a price of $15.40 per share. The lockdown was initially scheduled by directors in March 2001 to facilitate upcoming administrative changes in the retirement plan, a perfectly legal reason. Employees were notified in early October of the coming restriction on changes to the retirement plan. Unfortunately for Enron employees who chose to maintain most of their funds in Enron shares, the firm's stock price declined to $9.98 by the time the lockdown ended on November 13. Thus, employee investments in the firm's stock decreased by approximately 33% during the two-and-a-half-week lockdown period. Some employees claimed to have been misled with regard to the last day they were allowed to make changes to the retirement plan. Other critics claimed Enron's management had knowledge of the firm's severe financial difficulties and, as a result, had a fiduciary responsibility to the employees to postpone the lockdown until the news had been released. Many of the firm's employees maintained a substantial portion of their retirement funds in Enron stock, which by the end 2001 traded for less than $1 per share. The stock had traded above $80 per share early the same year.
References in periodicals archive ?
Media and staff members were allowed back in some time later but a partial lockdown of the northwest side of the building remained in place for a few hours.
It's not the first time a quarantine or lockdown has been enforced.
The application is ideal for K-12 schools, universities, hospitals, and corporate campuses where an incident could require the facility to go into immediate lockdown mode.
This type of lockdown protects the occupants of the facility from an external hazard such as a civil disturbance or outside contamination.
School officials and security experts say the lockdowns are a modest and sensible effort to guard against the unthinkable, and that they have helped keep students safe and calm.
The LOCDOWN family of products are cost effective, mechanical locks, that enable a teacher to lockdown a classroom from the inside, and may provide safer alternatives.
In April the lockdown was brought forward from 9pm to 3.
Here's what it means to some third-graders at Eugene's Corridor Alternative Elementary School, who participate in lockdown drills like most grade school students these days, and experienced a lockdown just two weeks ago:
I'd bet the average parent doesn't even acknowledge lockdowns because they're so routine since the 1999 Columbine High School shooting that kids never bother mentioning it.
The need for schools to prepare for lockdowns is so vitally important.
We have had various problems in West Bromwich, Tipton and Wednesbury but these lockdowns are a very effective measure to redress the balance.
LANCASTER - State prison officials are ending the lockdown that kept inmates in their cells 24 hours a day since June 1 as a cost-cutting measure, prison officials said.