lock-up agreement

lock-up agreement
USA
An agreement between a company or the underwriters on the one hand, and a stockholder on the other hand, that is executed in the course of a registered securities offering. In the lock-up agreement, the stockholder agrees that it will not sell its shares of the company for a specified period of time after the effective date of the registration statement. The typical lock-up period in an initial public offering is for 180 days; in a follow-on offering, the lock-up period is usually 90 days. See also overhang analysis.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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