Lock-Up Option

Filed Under » ,
Dictionary Says

Definition of 'Lock-Up Option'

A stock option offered by a target company to a white knight for additional equity or for the purchase of a valuable portion of their company.
Investopedia Says

Investopedia explains 'Lock-Up Option'

An undesired third party is deterred from acquiring a major portion of the target company due to the very high value of the lockup option.

Also known as Lock-Up Defense.

Related Definitions

Search results for

'Lock-Up Option'

  • Diversifying A Concentrated Stock Position

    http://www.investopedia.com/articles/stocks/11/diversify-stock-position.asp
    ... additional income, you also have the choice to sell a call option with a ... However,
    exchange funds typically have a seven year lock-up period to satisfy the tax ...
  • Series 7 Study Guide - Customer Accounts - Required Disclosures ...

    http://www.investopedia.com/exam-guide/series-7/customer-accounts/required-disclosures.asp
    ... disclosures include a discussion of the strategy, fees (asset management and incentive)
    and the various risk involved, along with the lock-up period during ...
  • CFA Level 1 Study Guide - Ethics and Standards - Standard: III-C ...

    http://www.investopedia.com/exam-guide/cfa-level-1/ethics-standards/standard-suitability.asp
    ... Values for Options; 15.32 Straddles and Strangles; 15.33 Option Prices and
    the Time to Expiration; 15.34 Put-Call Parity; 15.35 Effect ...
  • What Investment Is Best For You?

    http://www.investopedia.com/articles/pf/08/money-manager-or-alone.asp
    ... But how is an investor to know which route is the best option? ... In fact,
    some hedge funds have extended multi-year lock up periods. ...
  • Are CDs Good Protection For The Bear Market?

    http://www.investopedia.com/articles/bonds/08/CD-certificate-of-deposit-recession-bear-market.asp
    ... CDs are one option that can help protect your investment from these times of turmoil ...
    After you decide this is money you can afford to lock up for a period of ...

Related Articles

Partner Links