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🌍 US & Europe · Exits & dealsLock-up period
Also called: lockup, lock-up period
In one line
A set time after an IPO (often around 180 days) during which employees and insiders are barred from selling their shares.
In plain English
When a company goes public, insiders usually can't sell straight away. A lock-up holds them back for a few months to avoid flooding the market, after which they're free to trade.
If you were explaining it to a 5-year-old
The shop finally opens, but there's a rule: you have to wait six months before you're allowed to sell your toys there.
Why it matters when you sell
Even after an IPO, a lock-up delays your cash-out — and the price can move a lot before it lifts. It matters when you weigh selling privately now versus waiting.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.
Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.