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Lock-up Agreement. A legally binding contract between the insiders and underwriters of a company prohibiting the sale of its shares within a specified period.
A lock-up agreement is a contractual provision preventing insiders of a company from selling their shares for a specified period of time. They are commonly used as part of the initial public offering (IPO) process.
Lockup agreements prohibit company insiders including employees, their friends and family, and venture capitalists from selling their shares for a set period of time. The terms of lockup agreements may vary, but most prevent insiders from selling their shares for 180 days.
A lock-up agreement prohibits company insiders, such as employees and venture capitalists, from selling their shares for a set period of time. That agreement may require you to sign the lock-up agreement. If not, and if you are no longer affiliated with the company, you may not have to sign.
It is a contractual caveat outlining a period after a company has gone public when major shareholders are prohibited from selling their shares. Lock-up periods usually last between 90 and 180 days. Once the lock-up period ends, most trading restrictions are removed.
Definition of stock lock. a lock enclosed in a wooden case and attached to the face of a door.
A lock-up period, also known as a lock in, lock out, or locked up period, is a predetermined amount of time following an initial public offering where large shareholders, such as company executives and investors representing considerable ownership, are restricted from selling their shares.
A lock-up period, also known as a lock in, lock out, or locked up period, is a predetermined amount of time following an initial public offering where large shareholders, such as company executives and investors representing considerable ownership, are restricted from selling their shares.
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