Restriction preventing insiders from selling shares for a period after IPO.
In depth
Typically 90-180 days. Lockup expirations often pressure stock prices as insiders sell to diversify. Sophisticated investors track lockup expiration dates as potential entry/exit signals.
Frequently asked about Lockup Period
What is Lockup Period?
Restriction preventing insiders from selling shares for a period after IPO. Typically 90-180 days. Lockup expirations often pressure stock prices as insiders sell to diversify. Sophisticated investors track lockup expiration dates as potential entry/exit signals.
Why does Lockup Period matter for investors?
In corporate actions, Lockup Period is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
How is Lockup Period used in practice?
Typically 90-180 days. Lockup expirations often pressure stock prices as insiders sell to diversify.