Definition
The time window (usually 6-12 months post-IPO) when executives and employees can't sell their stock. Ensures nobody realizes what insiders know about the company declining until it's too late.
Example Usage
My options finally unlocked today, which is perfect timing since the stock is at half what it was at IPO.
Origin
Regulatory requirement established by SEC; became standard in tech sector during 1990s IPO boom
Fun Fact
Lockup periods exist to prevent insider selling dumps, but insiders usually know before the public when to sell anyway
Source: Securities law and equity compensation
Related Terms
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See “Lockup Period” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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