Definition for : Lock up period

A shareholder who has sold a large number of shares or a company which has issued new shares is frequently required not to proceed with a supplementary sale/issue of shares for a given period called the lock up period. Most of the time it lasts between 3 and 9 months.

(See Chapter 26 Value and corporate finance of the Vernimmen)

To know more about it, look at what we have already written on this subject