Purpose of IPO Lock-up Periods

Lock-up periods are contractual agreements, typically 90 to 180 days, designed to prevent immediate large-scale insider selling that could destabilize the stock price and signal confidence to public market investors.

Sources

• End of Facebook IPO lock-up period may negatively affect stock price, new study finds
• How the IPO Lock-Up Period Works After a Company Goes Public - StartEngine
• What You Should Know About the IPO Lockup Period | Werba Rubin Papier - WRP Wealth

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