Homonym: Lockup (Detention)
A "lockup" refers to a period during which company insiders, such as executives and employees, are restricted from selling their shares after an initial public offering (IPO). This period typically lasts for 90 to 180 days and is designed to prevent excessive selling that could destabilize the stock price immediately after the company goes public.
Once the lockup period expires, insiders are allowed to sell their shares, which can lead to increased trading volume and potential fluctuations in the stock price. Investors often monitor lockup expiration dates closely, as they can impact market sentiment and the overall valuation of the company.