- lockup
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lock·up n1: a cell or group of cells (as in a courthouse) or jail where persons are held prior to a court hearing compare house of correction, house of detention, jail, penitentiary, prison2: the tactic of arranging with a friendly party an option to buy a valuable portion of one's corporate assets in order to discourage a takeover by another party
Merriam-Webster’s Dictionary of Law. Merriam-Webster. 1996.
- lockup
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A place of detention in a police station, court or other facility used for persons awaiting trial. In corporate law, a slang term that refers to the setting aside of securities for purchase by friendly interests in order to defeat or make more difficult a takeover attempt. A lockup option is a takeover defensive measure permitting a friendly suitor to purchase divisions of a corporation for a set price when any person or group acquires a certain percentage of the corporation's shares.To be legal, such agreement must advance or stimulate the bidding process, to best serve the interests of the shareholders through encouraged competition.
Dictionary from West's Encyclopedia of American Law. 2005.
- lockup
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A place of detention in a police station, court or other facility used for persons awaiting trial. In corporate law, a slang term that refers to the setting aside of securities for purchase by friendly interests in order to defeat or make more difficult a takeover attempt. A lockup option is a takeover defensive measure permitting a friendly suitor to purchase divisions of a corporation for a set price when any person or group acquires a certain percentage of the corporation's shares.To be legal, such agreement must advance or stimulate the bidding process, to best serve the interests of the shareholders through encouraged competition.
Short Dictionary of (mostly American) Legal Terms and Abbreviations.