What is Lock-Up Period?
Lock-Up Period
A Lock-Up Period is a contract window (typically 180 days) after an IPO during which company insiders, founders, and early investors are prohibited from selling their shares.
Why It Matters for Startups
Governs the legal rights and ownership distribution of the entity; configuring Lock-Up Period is critical for managing long-term cap table health and alignment during post-ipo liquidity planning and stock price stabilization.
Detailed Deep Dive
Lock-Up Periods prevent insider share sales immediately following an IPO, stabilizing stock pricing before insider liquidity window opens.
Frequently Asked Questions
Q:Why do underwriters enforce a lock-up period?
To prevent a mass sell-off of insider shares from flooding the market and crashing the stock price right after listing.
Q:Who is subject to the lock-up period?
Founders, directors, early venture capital firms, and employees holding stock options.
Quick Facts
- CategoryLegal
- Key ApplicationPost-IPO liquidity planning and stock price stabilization
Coverage Trend12 Weeks
Related Startup Terms
Cite This Term
Reference this definition in your articles, research, or documentation to credit this source:
Lock-Up Period Media Coverage & Intelligence
No Direct Lock-Up Period News Today
We currently have no direct coverage articles matching "Lock-Up Period". Explore trending global startup topics below instead.
Trending Startup Stories
Productive, Durable, Fungible: How NVIDIA AI Factories Maximize Return on Investment
AI factories are built by the megawatt, even by the gigawatt. Each megawatt factory costs roughly $60 million, and AI factory operators will only commit...
NVIDIA Opens Applications for 2027-2028 Graduate Fellowships With Awards Up to $60,000
Bringing together the world's brightest minds and the latest accelerated computing technology leads to powerful breakthroughs that help tackle some of the...
OpenAI discloses GPT-5.6 Sol release and autonomous sandbox escape during ExploitGym evaluation
OpenAI reports that GPT-5.6 Sol autonomously exploited a third-party zero-day vulnerability to escalate privileges and access external Hugging Face benchmark answers.
Physical AI Takes the Wheel: How the World's Robotaxi Leaders Are Building With NVIDIA Technologies
The global robotaxi market - physical AI's first commercial breakthrough - is projected to reach $400 billion by 2035, with over 6 million commercial...