Does the lock up period restrict the public or insiders only

A lock-up period restricts both insiders and, in some cases, the public. Here's a breakdown: 1. **Insiders**: A lock-up period primarily restricts insiders, including: - Company executives - Large shareholders - Founders and directors - Significant investors who have a substantial stake in the company These individuals are typically prohibited from selling their shares for a set period after an IPO. This restriction is intended to stabilize the stock price, prevent market volatility, and ensure the company's continued growth by retaining more cash. 2. **Public**: In some contexts, a lock-up period may also restrict the public from trading the shares of the company. This is less common and typically occurs in specialized situations, such as: - During a blackout period: If the lock-up expires during a blackout period, which is a time when directors, officers, and employees are not allowed to trade under the company's insider trading policy, the public cannot trade the shares until the blackout period ends. - In certain IPO structures: In some special purpose acquisition company (SPAC) IPOs, the lock-up period for SPAC sponsors is typically longer than for traditional IPOs. This is to provide time for the acquisition company to identify a target company. When the lock-up period for SPAC IPOs expires, the stock traded at over $15 for at least 20 out of 30 consecutive trading days, and as a result, the condition under the lock-up agreement was met, and the lock-up period was shortened. In summary, a lock-up period primarily restricts insiders from selling their shares immediately after an IPO. While it does not directly restrict the public from trading, there may be indirect restrictions in place, such as blackout periods or specific IPO structures, that can limit public trading under certain conditions.