Lockup Agreement

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Lockup Agreement

Where the purchaser of securities agrees not to sell the securities for a certain period of time (the lockup time).

Lockup Agreement

1. See: Crown jewel lockup agreement.

2. During an IPO, a contract prohibiting executives, underwriters, and/or venture capitalists from selling their shares in the company for a certain period of time. The period of time is usually about six months, but may be longer or shorter. A lockup agreement exists to reduce the pressure for volatility as the company goes through its first few months of public trade.

lockup agreement

A contractual offer of valuable assets or stock made by a takeover target to the suitor deemed most acceptable to management. A lockup agreement tends to discourage unwanted suitors, but it may penalize the target firm's stockholders because it eliminates counteroffers. Also called crown jewel lockup agreement.
References in periodicals archive ?
Hypothesis 1 implies that lockup periods for forecasters should be significantly longer than those for non-forecasters.
The second hypothesis, which we call the "informative selling hypothesis," states that the sales behavior of IPO corporate insiders shortly after lockup provides investors with important information about the firm's value.
The whole problem with the stock has been with the lockups coming up," said Herman Leung, an analyst at Susquehanna International Group in San Francisco, who has a positive rating on the shares.
Today, the courthouse only handles civil matters and doesn't use the lockup facility at all.
Nobue explains to us that this and all the other devices only use electrical power for the two electromagnetic stators at either side of each rotor, which are used to kick the rotor past its lockup point then on to the next arc of magnets.
Mullins said of Lockup Firedice: "He's a marvellously consistent dog and this will be his eighth appearance in a final.
Police lockups have become our psychiatric clinics.
Police booked him under 14 foreign act and he was also sent to the judicial lockup.
Ali of Mohallah Islampura Jalalpur Bhattian was locked in the police lockup in Jalalpur Bhattian police station.
Earlier on Thursday, three criminals involved in serious terrorism cases fled from a court lockup in Karachi.
We document a prominent abnormal stock return of-14% during the [-120, +20] day window dow around 482 lockup expirations in the split-share structure reform in China.
HOUSTON, July 26 /PRNewswire-FirstCall/ -- Hyperdynamics Corporation (NYSE Amex: HDY) today announced that it has reached lockup agreements with Kent Watts, former Chairman and CEO, and Mike Watts, a former consultant to the Company.