A contractual restriction, typically 90 to 180 days after an IPO, preventing existing shareholders (founders, employees, early investors) from selling their shares. It exists to prevent an immediate flood of selling pressure right after the stock starts trading; its expiration is often watched closely since it can increase available share supply.
The lock-up expiration date is one of the most closely watched moments after an IPO, since it's the first point at which insiders who couldn't sell actually can. A wave of selling at expiration can put downward pressure on a stock even when the underlying business hasn't changed at all — it's a supply shock hitting the market, not new information about the company's fundamentals, and it's worth marking the date if you're tracking a specific name.
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