A lock-up agreement prevents sale of insider shares for 12 to 36 months.

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A lock-up agreement is a contractual agreement in which insiders agree to refrain from selling their shares for a specified period of time. Typically, lock-up agreements last for 12 to 36 months after an initial public offering (IPO) or other major corporate event. This is to prevent insiders from flooding the market with shares, which could cause the stock price to decline.

A Lock-Up Agreement Prevents Sale of Insider Shares for 12