Lock-up provision
From Wikipedia, the free encyclopedia
Script error: No such module "about".
Page Module:Message box/ambox.css has no content.
This article needs additional citations for verification. (April 2024) |
In corporate finance, a lock-up provision is a contractual term that prohibits a shareholder from selling company stock for a period of time known as the lock-up period.[1]
Lock-up provisions are commonly used to restrict pre-IPO shareholders from selling their shares once the company has been taken public so as to maintain the value of the stock.[2]
See also
References
Page Template:Reflist/styles.css has no content.
- ^ Page Module:Citation/CS1/styles.css has no content.Mohan, Nancy J; Chen, Carl R (2001). "Information content of lock-up provisions in initial public offerings". International Review of Economics & Finance. 10 (1): 41. doi:10.1016/S1059-0560(00)00070-8.
- ^ Page Module:Citation/CS1/styles.css has no content.Estevez, Eric. "What Is a Lock-Up Period? How It Works, Main Uses, and Example". Investopedia. Retrieved 27 August 2025.
