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Lockup
An agreed upon time between company insiders who hold stock and the underwriters as to how long those shareholders must retain their stock before selling them in the open market. It is a show of faith by those holders in the company to the new stockholders. Sales of securities by this insider group can be done prior to that time with the consent of the underwriter.
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- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Banking
- Category: Initial public offering
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