# What Is an IPO Lock-Up Period and How to Prepare for It? Learn about the waiting period before you can sell your shares after an IPO and how to make the most of this time. - **Source:** [NerdWallet](https://brifing.si/source/47fee75b-2b5e-493d-9ac3-f012b6c37891) - **Published:** 2026-07-14 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/9869cb35-71b3-4cee-b62a-ed13c1eb1ef6 ## What Is an IPO Lock-Up Period? A lock-up period restricts insiders and early investors from selling shares immediately after an IPO, typically lasting 90-180 days. Though not mandated by the SEC, it helps stabilize stock prices by preventing large sell-offs. This period is crucial for market confidence and price stability. ## How Are Lock-Up Terms Determined? Lock-up conditions vary by company. For example, SpaceX releases shares in stages based on dates and performance goals. Companies disclose these terms in registration documents, so reviewing the IPO prospectus and equity plan details is essential to understand your specific restrictions. ## What to Do During the Lock-Up Period Use this time for financial planning. Review your equity types (RSUs, ISOs, etc.) and key details like vesting dates and tax implications. Reassess long-term goals and risk tolerance with a financial advisor to prepare for liquidity events post-lock-up. ## Understanding Concentration Risk Holding a large portion of your wealth in company stock poses concentration risk. For instance, a $600,000 stake could drastically impact your finances if the stock declines. Diversification strategies are vital to mitigate this risk and balance your portfolio. ## Creating a Share Sale Plan Plan how and when to sell shares post-lock-up. Strategies like gradual selling or a Rule 10b5-1 plan allow pre-scheduled sales, even during blackout periods. This systematic approach helps manage your holdings strategically over time. ## Leveraging Financial Advisory Services Firms managing your company’s equity (e.g., Morgan Stanley) often provide free advisory services. Their specialists can analyze your holdings, identify high-risk lots, and offer valuation insights to support your financial decisions during and after the lock-up. ## Key Takeaways An IPO lock-up period is a pivotal time for financial planning. Understand your equity, assess taxes and risks, and seek expert advice. Proper preparation ensures you maximize the liquidity opportunity when the lock-up ends, aligning with your long-term financial goals. ## Sources covering this story - https://www.nerdwallet.com/investing/learn/what-to-do-during-lock-up-period — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._