Lock-up provision

This article is about the corporate finance term. For other uses, see Lock Up (disambiguation).

In corporate finance, a lock-up provision is a contractual term that prohibits a shareholder from selling company stock for a period of time known as the lock-up period.

Lock-up provisions are commonly used to restrict pre-IPO shareholders from selling their shares once the company has been taken public so as to maintain the value of the stock.

See also

• Crown jewel lock-up
• Poison pill
• Mergers and acquisitions