Lockdown

AAA

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.

RELATED TERMS
  1. Employee Stock Option - ESO

    A stock option granted to specified employees of a company. ESOs ...
  2. Insider Trading

    The buying or selling of a security by someone who has access ...
  3. Open-Market Transaction

    An order placed by an insider, after all appropriate documentation ...
  4. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  5. Share Purchase Rights

    A type of security that gives the holder the option, but not ...
  6. Concurrent Periods

    A period of time in which more than one injury or disability ...
Related Articles
  1. Options & Futures

    When Insiders Buy, Should Investors ...

  2. Options & Futures

    Business Owners: Avoid Enron-esque Retirement ...

  3. Investing Basics

    Policing The Securities Market: An Overview ...

  4. Investing

    What exactly is insider trading?

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center