Lock-in |
| A specified time period that an investor is locked into an investment. An example would be a period following a flotation when major shareholders agree not to sell their holdings. The objective is to give investors confidence that the management and key shareholders do not intend to cash in their stock the moment the market opens. Most flotation prospectuses have get-out clauses, the most common being that if the company is the subject of a takeover bid, shareholders are allowed to sell. |
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