# Lock-Up Period

*Markets & Instruments — Finicade finance glossary*

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.

**Also known as:** IPO lockup, lock-up expiry

**Related terms:** [IPO (Initial Public Offering)](https://finicade.com/glossary/ipo), [Free Float](https://finicade.com/glossary/free-float), [Secondary Offering](https://finicade.com/glossary/secondary-offering), [Direct Listing](https://finicade.com/glossary/direct-listing), [Dilution](https://finicade.com/glossary/dilution)

Source: https://finicade.com/glossary/lock-up-period