IPOs
What is Lock-in period?
Hinglish mein padhein: Lock-in period kya hota hai?
A lock-in period is a time during which certain shareholders — promoters, anchors or pre-IPO investors — cannot sell their shares.
When large lock-ins expire, the supply of shares available for sale rises, which can pressure the price.
Lock-in expiries are disclosed in the prospectus.
Related terms
- Anchor investorAnchor investors are large institutions that commit to buy IPO shares a day before the issue opens to the public.
- Promoter and promoter holdingPromoters are the founders or controlling shareholders of a company. Promoter holding is the percentage of shares they own.
- IPO (Initial public offering)An IPO is when a private company sells shares to the public for the first time and lists them on a stock exchange.