Lockdown

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DEFINITION of 'Lockdown'

A specified period when an employee of a public company is barred from selling - and occasionally buying - his or her company's stock.

INVESTOPEDIA EXPLAINS'Lockdown'

These types of equity transaction restrictions can be imposed by securities regulators or underwriting firms if a company has recently issued public securities. They can also be self-imposed by a corporation as an impetus for employees to retain company stock.

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