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IPO lock-up
A period of time following an IPO during which company insiders and major stockholders are restricted from selling their stock. The period is between 3 months and 2 years, and is an agreement between the company and underwriters. Following the period many investors cash in on their investment and the share price falls dramatically.
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- Part of Speech: noun
- Synonym(s):
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- Industry/Domain: Financial services
- Category: Stocks & securities
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