Blocking period (share)

In banking, the term lock-up period describes the period during which shareholders , mostly institutional investors , undertake not to sell any of their shares after the IPO . In Germany, a blocking period of between 6 and 18 months is the rule.

A blocking period is usually agreed after a new issue of shares. This measure serves to keep prices stable ; The intention is not to cause the share price to fall excessively through the immediate sale of large blocks of shares . Shares with a blocking period of at least 6 months are not included in the free float .