A provision that restricts the sale or transfer of Common Stock or any Convertible Security within a certain amount of time (often 180 days) following an IPO, Direct Listing, or SPAC Transaction without approval by the Company or the managing underwriters in such transaction, as applicable. This is designed to prevent an immediate drop in share value shortly after a Company goes public, during the time when the underwriters actively support the price of the stock.
Glossary