A restriction that prevents existing shareholders from selling their shares for some period after an IPO is called:

Question

Quizplus · Accepted Answer

A lockup is a restriction that prevents existing shareholders from selling their shares for a predetermined period after an IPO, typically ranging from 90 to 180 days. This is done to prevent a sudden influx of shares in the market, causing volatility in the share price.

A Restriction That Prevents Existing Shareholders from Selling Their Shares