Lock-up period

The term lock-up period ( lock-up period) referred to in banking the time to commit to the shareholders, mostly institutional investors themselves, after the IPO, any of their shares for sale. In Germany is a waiting period between 6 and 18 Months rule.

Usually a waiting period after a new issue of shares is agreed. This measure serves to keep prices stable; it should not fall excessively by the immediate sale of large blocks of shares, the share price. Shares with a holding period of at least 6 months are not expected to float.

• Company Law