lockup period

Lockup Period

A time during which a publicly-traded company forbids management and large stockholders to sell their shares, usually following an initial public offering. Depending on the company, the lockup period may be 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 an indication of a lack of confidence in the company, triggering a panic sell. After the lockup period ends, however, shareholders may sell without restriction.

lockup period

The time during which employees and other early investors are prohibited from selling stock in a newly listed company. Investment banks that bring the securities to market establish lockup periods to protect investors in a new issue from large insider selling that can have a major price impact because of a relatively small number of shares available for trading. Lockup periods are usually 180 days from the date of the initial public offering.
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A spokesman for Mondelez said Trian had informed the company of the sale and said it was linked to the end of a lockup period in one of Trian's co-investment funds that only held Mondelez stock.
Shares of Baker Hughes (BHGE) are rising after General Electric (GE) CFO Jamie Miller said earlier while speaking at an industry conference that the company has no plans to alter its majority ownership stake prior to the end of the companies' two-year lockup period in 2019.
The ultimate unlimited data offering is the first of its kind that allows customers to stream video, play music and games without having to worry about data-capping, lockup period, and speed throttling.
Consideration shares issued to Nabors as part of the transaction will be subject to a three-month lockup period.
This comes just ahead of the lockup period at the end of the month in which insiders can begin selling their shares.
He adds there are short-term lockup period funds, as short as one year, noting the lockup time depends on the fund's strategy.
Although the funds sell some shares at the IPO itself, the majority of the sales transactions occur in the period following the post-IPO lockup period.
Will the stock be subject to a lengthy lockup period when selling is prohibited?
The shares will have a lockup period of 36 months, and the proceeds will be used to strengthen the bank's core Tier- One capital.
The Islamic Republic of Pakistan and OGDCL will be subject to a lockup period of 180 days, subject to waiver by BofAML, Citi and KASB.
Every IPO has a lockup period which prohibits company insiders, such as officers and employees, from selling their allocations.
Founders of public joint stock companies continue to be restricted by a lockup period of two years under the New Law, which defeats sell-down exist options in IPOs.