Lockupperioder

Lockupperioder is a nonstandard term used to describe the period after certain corporate actions during which specified holders are restricted from selling or transferring their shares. In most contexts, the same concept is referred to as a lock-up period. Lockup agreements are negotiated arrangements among issuers, underwriters, and investors that set the duration and scope of the restriction.

Common contexts include initial public offerings (IPOs) and follow-on offerings. In IPOs, insiders and pre‑IPO shareholders typically agree not to sell for a specified number of days after the offering, commonly 90 to 180 days. The restriction helps maintain price stability, protect new investors, and allows underwriters to stabilize the market during the critical post-issuance period. Similar lock-up provisions can apply to private placements or secondary offerings and to employee stock plans.

Terms and conditions vary. A lock-up contract specifies who is restricted, which shares qualify, the duration, and any exceptions. Typical exceptions permit transfers to affiliates, certain estate transfers, or sales approved under the agreement; releases in staged tranches; or early release with consent. The exact rules depend on jurisdiction and the negotiated underwriting agreement.

Impact and considerations: Lock-up periods can limit liquidity for holders and influence initial trading dynamics when the restriction expires, sometimes causing price volatility. They are not universal and may be shorter or longer depending on market conditions, company size, and regulatory rules. In the United States, there is no single statutory lock-up; rather, post-IPO sale restrictions are set by underwriting agreements and prospectuses.

See also: Lock-up period; IPO; Securities law.