Lock Up Period

The term ‘lock up period’ refers to the period of time following an IPO of a company when investors or other shareholders are not allowed to redeem or sell shares. The typical lock up period is 180 days, but it can last for over a year. Lock-up periods are not required by the Securities and Exchange Commission (SEC) or any other regulatory body, but are established to prevent large investors from flooding the market with their shares.

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