A lockup provision prohibits insiders from selling their existing shares for a specified period of time.

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A lockup provision is a contractual clause between an issuer and insiders prohibiting them from selling their existing shares for a specified period of time, typically after an initial public offering (IPO) or other significant corporate event. This is done to prevent a large number of shares flooding the market and causing a significant drop in stock price.

A Lockup Provision Prohibits Insiders from Selling Their Existing Shares