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Definition: Lock-up signifies a critical milestone in construction. Its the stage where the major structural elements are completed, creating a secure and weatherproof environment for further work on the interior.
A lock-up period is a designated time (usually following an IPO) during which company insiders are prohibited from selling their shares. The period aims at stabilizing stock prices and preventing market volatility.
The lock-up agreements provide the underwriters or placement agents with some assurance that new issuer securities will not be sold immediately following the proposed offering the sale of which might disrupt the trading market for the offered securities.
The main purpose of a lock-up period is to help mitigate share price volatility in the days and weeks following an IPO, allowing the market to find the stocks true value. Naturally, companies prefer a high price and high demand for their shares.
The steps below are outlined in OSHAs 1910.147 App A - Typical minimal lockout procedure. Step 1: Notify affected employees. Step 2: Identify procedure and hazards. Step 3: Shut down. Step 4: Isolate machine from energy source. Step 5: Apply lockout tagout devices. Step 6: Check stored energy.
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Lock-up is the value of revenue that has been earned but has not yet been converted to cash as it is either tied up (or locked up) in unbilled work in progress or outstanding trade debtors.

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