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Definitions from WordNet

Definitions from the Web

Lock-Up Option

Description:

A lock-up option refers to a contractual provision that allows an investor or company to restrict the sale of its shares for a specified period. It is commonly used during initial public offerings (IPOs) to prevent insiders or early investors from selling their holdings immediately after the offering.

Sample Sentences:

As a noun:

• The lock-up option helped maintain stability in the stock price during the IPO.
• Investors agreed to a one-year lock-up option to generate more confidence in the company's long-term prospects.

As a verb:

• The founders decided to lock-up their ownership stakes for six months through a lock-up option.
• The lock-up option allowed the company to control the timing of insider sales.

Possible Related Products:

Explore related books and resources on lock-up options:

• Lock-Up Options: Investment Strategies for Long-Term Holders
• IPO Lock-Up Options: Navigating Investor Restrictions