Market Standoff Agreement

An agreement that prevents insiders of a company from selling their shares in the market for a specified number of days subsequent to an initial public offering (IPO). The agreement is executed between the underwriters to the issue and the company's insiders. The term during which insiders are prohibited from selling their shares consequent to a market standoff agreement is generally 180 days, but can vary from as little as 90 days to as much as one year.

Market standoff agreements are used to avoid precipitous declines in a stock after it commences trading because of massive insider sales. When the dotcom boom turned to bust from 2000 onwards, numerous stocks in the sector lost a major chunk of their market capitalization within weeks of the expiry of such lock-up agreements, an alternate term for market standoff agreements.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Chronology of world oil market events (1970-2005) — Basic OverviewThe 1970s See: 1970 1979 world oil market chronology 1970*January 1: U.S. Federal oil depletion allowance reduced from 27.5 to 22.0 percent. *May 3: TAP line from Saudi Arabia to the Mediterranean interrupted in Syria, creating all… …   Wikipedia

  • Chronology of world oil market events (1970–2005) — Contents 1 Basic overview 2 The 1970s 2.1 1970 2.2 1971 …   Wikipedia

  • 1990-1999 world oil market chronology — 1990*Aug: Iraq invades Kuwait. Crude and product prices soar upward; exchange markets react wildly to any middle east news events; cash markets dominate prices after trading hours; jet fuel prices rise to record spreads over other products due to …   Wikipedia

  • 1997 world oil market chronology — *February 5: Japan s Ministry of Finance announces plans to cut import tariffs on crude oil and most petroleum products from April 1, 1997, in a phased process that will reduce the country s crude oil import tariff rate to zero in April 2002.… …   Wikipedia

  • United States — a republic in the N Western Hemisphere comprising 48 conterminous states, the District of Columbia, and Alaska in North America, and Hawaii in the N Pacific. 267,954,767; conterminous United States, 3,022,387 sq. mi. (7,827,982 sq. km); with… …   Universalium

  • Law, Crime, and Law Enforcement — ▪ 2006 Introduction Trials of former heads of state, U.S. Supreme Court rulings on eminent domain and the death penalty, and high profile cases against former executives of large corporations were leading legal and criminal issues in 2005.… …   Universalium

  • Russia — /rush euh/, n. 1. Also called Russian Empire. Russian, Rossiya. a former empire in E Europe and N and W Asia: overthrown by the Russian Revolution 1917. Cap.: St. Petersburg (1703 1917). 2. See Union of Soviet Socialist Republics. 3. See Russian… …   Universalium

  • Dates of 2007 — ▪ 2008 January Ladies and gentlemen: on this day, at this hour, it is still within our power to shape the outcome of this battle. Let us find our resolve, and turn events toward victory. U.S. Pres. George W. Bush, asking for support for his… …   Universalium

  • Israel — /iz ree euhl, ray /, n. 1. a republic in SW Asia, on the Mediterranean: formed as a Jewish state May 1948. 5,534,672; 7984 sq. mi. (20,679 sq. km). Cap.: Jerusalem. 2. the people traditionally descended from Jacob; the Hebrew or Jewish people. 3 …   Universalium

  • Calendar of 1993 — ▪ 1994 January January 1       Czechoslovakia now two nations. What had been the single nation of Czechoslovakia officially became two independent states, the Czech Republic and Slovakia. Vaclav Havel, the former president of Czechoslovakia, and… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.