Lock-Up Period
Also called: IPO lockup, lock-up expiry
A lock-up period bars insiders and early investors from selling for a set time after an IPO — commonly 90 to 180 days. It exists to stop a flood of supply from swamping a newly listed stock. The expiry date is therefore a well-telegraphed supply event, and newly public shares frequently drift lower into it as the market prices in the shares about to become sellable.