Lock-up period
MarketsDefinition
Restriction (typically 90-180 days) during which insiders, early investors, and employees cannot sell shares of a newly IPO'd company. Designed to prevent dumping pressure right after the IPO.
Lock-up expirations are often visible drags on stock prices — anticipated supply hits the market on day 91. Modern direct listings (Spotify, Slack) have no lock-ups.
Lock-up expirations are often visible drags on stock prices — anticipated supply hits the market on day 91. Modern direct listings (Spotify, Slack) have no lock-ups.