RE: Could PRIM be forced to buy back or compensate PR1?25 Jun 2025 11:05
A lock-up period is a contractual agreement, typically following an Initial Public Offering (IPO), that prohibits company insiders (such as founders, executives, employees, and early investors) from selling their shares for a specified period, usually 90 to 180 days. This is designed to stabilize the stock price and prevent a flood of shares from hitting the market immediately after the IPO, which could drive down the price and harm investor confidence.
If a company (or its insiders) illegally sells shares during a lock-up period, the consequences can be severe and multifaceted: