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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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.
National Grid and New Jersey Resources have agreed to certain transfer restrictions applicable to such units including, with certain exceptions, a general one-year lockup period, and have been granted certain registration rights and piggyback registration rights with respect to future Dominion Midstream equity offerings.
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.
A 6-month lockup period is obligatory for all of them.
The company shortened the lockup period for certain employees, so 234 million shares will now be available for sale on October 29, instead of November 14.
At least no Facebook insiders have reported sales as they did after the lockup period expired two weeks ago.
Washington, Aug 21 ( ANI ): One of social networking giant Facebook's earliest investors and a board member of the firm, has sold over 20 million shares after the expiry of the lockup period last week.
Minimum subscription is $500,000 with a two year lockup period.
After the lockup period, transfers generally remain subject to distribution limitations, such as caps on the amount transferred in any single transaction or over specified intervals.