Lockup Agreement

(redirected from Lock-up)
Also found in: Dictionary, Thesaurus, Legal, Encyclopedia, Wikipedia.
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 SSP further says that he and his subordinate officers visit police stations from time to time to review the cleanliness of lock-ups.
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.
(10) This and other evidence indicates that lock-up creep has had little
The cons are even allowed to invite guests into the lock-ups for the ceremony, but these are limited to a "reasonable number" decided upon by the Governor.
[I]n my experience, lock-up creep sometimes happens when a buyer was burned (or almost burned) when a prior deal was topped or challenged.
"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
All Budget lock-up security measures are currently being reviewed as they are after each Budget event.
But when they arrived the blaze had already spread to a lock-up and taken hold.
At Caernarfon the town's lock-up has been turned into one of Britain's smallest chapels.
"Since the last meeting, we've had 17 reported across residential and commercial properties, as well as lock-ups and garages.