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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.
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.
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.
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.
An investor is “locked in” when he or she is unwilling or unable to trade a security because regulations, taxes or penalties prevent it. Stocks, options and warrants offered under employee incentive programs, which usually come with a mandatory vesting period, can all become locked in.
The term lock, stock and barrel refers to the parts of a gun. If one has a lock, stock and barrel, then one has everything that makes up a gun. In time, the phrase came to be used figuratively to mean the whole thing.
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