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Finance Glossary

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Lockup Period


The length of time your BFF had to cool his heels in Vegas before you could come up with the bail money.

The lockup period also refers to a period of time when investors can't sell their shares. After an offering is made to the public, for example, venture investors might not be able to turn around and sell their stocks for 6 months, according to the fine print. These six months are the lockup period.