What is 'Lock-Up Period'?

A lock-up period is a window of time in which investors of a hedge fund or other closely-held investment vehicle are not allowed to redeem or sell shares. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

| Term of the Day Lock-Up Period A lock-up period is a window of time when investors in a hedge fund or another closely held investment vehicle are not allowed to redeem or sell shares. The lock-up period helps portfolio managers avoid liquidity problems while capital is put to work in sometimes illiquid investments. The initial public offering (IPO) lock-up is a typical lock-up period in the equities market used for newly issued public shares. It typically lasts anywhere from 90 to 180 days after the first day of trading so that fund managers can keep a lower amount of cash on hand. Read More » Related to "Lock-Up Period" What Is an IPO Lock-Up Period and How Long Is It? An IPO lock-up period is a contractual restriction that prevents insiders from selling the stock for a period after the company goes public. Read More » What are the different types of IPOs for a private company to hold? Learn about the two ways for a company to go public: fixed price and book building. Under fixed price, the share price is known in advance. Read More » Private Equity vs. Public Equity: What's the Difference? Both public equity and private equity have advantages and disadvantages for companies and investors. Read More » Related Definitions Initial Public Offering - IPO An initial public offering is when a private company or corporation raises investment capital by offering its stock to the public for the first time. Read More » Hedge Fund A hedge fund is an aggressively managed portfolio of investments that uses leveraged, long, short and derivative positions. Read More » Capital Capital is a term for financial assets or their financial value as well as the tangible factors of production and facilities. Read More » Insider Trading Insider trading is the buying or selling of a publicly traded company's stock by someone who has non-public, material information about that stock. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2019, Investopedia, LLC, All Rights Reserved | Privacy Policy