Lockup

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Lockup

A place of detention in a police station, court or other facility used for persons awaiting trial. In corporate law, a slang term that refers to the setting aside of Securities for purchase by friendly interests in order to defeat or make more difficult a takeover attempt. A lockup option is a takeover defensive measure permitting a friendly suitor to purchase divisions of a corporation for a set price when any person or group acquires a certain percentage of the corporation's shares. To be legal, such agreement must advance or stimulate the bidding process, to best serve the interests of the shareholders through encouraged competition.

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Sample Distribution and Summary Statistics This table presents the sample distribution and summary statistics of 2,269 IPOs with lockup agreements from 1988 to 2003 in Securities Data Company's (SDC) New Issues Database.
That is to say, in a compensatory transaction where the option grant meets the definition of 4 beyond the scope of this article) and where the stock received upon option exercise is not transferable or subject to substantial risk of forfeiture, income recognition will be properly deferred until the restriction (e.g., from a lockup agreement) ceases to apply.
Lockup agreements, signed with investment bankers at the time of the IPO, also restrict pre-IPO investors from selling shares immediately after an IPO.
In particular, the IPO lockup agreement gives insiders incentives to provide truthful earnings forecasts.
that the companies that have entered into lockup agreements with Aurora, in respect of the bid, be treated as acting jointly and in concert with Aurora in making the bid; and IV.
Approximately 95% of the shares shall be issued to the main shareholder of THC Industries, Inc., Ramsey Salem, who along with all other shareholders receiving shares from the company in this transaction have entered into two-year lockup agreements with the company restricting any share sales during that period.
The company said that this filing was made under contractual obligations on behalf of some of its security holders, the majority of which are subject to lockup agreements till 20 December 2014, restricting their ability to sell these securities.
The company said that the filing was made under its contractual obligations on behalf of some of its security holders, the majority of which are subject to lockup agreements restricting their ability to sell till 20 December 2014.