Lockup Agreement

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Related to Lock-up: Lock-up period, Lock-Up Agreement

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 ?
The lock-ups are meant to reassure investors buying into a share sale that the seller will not dump more of their stake on the market shortly afterwards, driving down the share price.
While the Delaware courts cleared the way for lock-up creep, its
We argue that changes in Delaware court doctrine allowed lock-up creep, but this begs the question of whether the response is based on market forces or due to other agency costs.
But given that a larger than usual percentage of Facebook shares are held by individuals, who might not have factored in the lock-up expiration, the stock price could face more headwinds," he added.
LISTED: Prince Rupert's Tower from 1787 used as a temporary lock-up and now the symbol worn on Everton Football Club's shirt
The officers were checking local authority lock-ups weren't being used to store stolen or dangerous goods.
It is merely reflecting the price for other lock-ups in that location.
Yesterday, more than 20 Grampian officers were searching lock-up garages in the Elgin area.
POLICE last night began searching lock-up garages as the hunt for missing mum Arlene Fraser was stepped up.
Of the 29,286,754 shares issued and outstanding, approximately 15,652,000 are held by DOBI Medical's directors and executive officers as well as certain other significant stockholders who previously agreed to lock-up arrangements.
The lock-up owner believes developers could turn the building into mews houses by adding an upper floor and slate roofs.