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 Glossary   >   L   >   "Locked in" Definition   

        Locked in

Investors are said to be "locked in" when a security they own is trading at a higher price than they paid for, but they choose not to sell in order to avoid having their profit become subject to the capital gains tax.The term also refers to the situation in which a shareholder is legally obliged not to sell shares for a given period. The most common instance of this is with initial public offerings (IPOs) where investors are comforted if they know that directors and founding shareholders are locked in for at least 6 or 12 months after flotation.

Locked in


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Locked in - Investors are said to be "locked in" when a security they own is trading at a higher price than they paid for, but they choose not to sell in order to avoid having their profit become subject to the capital gains tax.The term also refers to the situation in which a shareholder is legally obliged not to sell shares for a given period. The most common instance of this is with initial public offerings (IPOs) where investors are comforted if they know that directors and founding shareholders are locked in for at least 6 or 12 months after flotation.


Locked in : investors are said to be "locked in" when a security they own is trading at a higher price than they paid for, but they choose not to sell in order to avoid having their profit become subject to the capital gains tax.the term also refers to the situation in which a shareholder is legally obliged not to sell shares for a given period. the most common instance of this is with initial public offerings (ipos) where investors are comforted if they know that directors and founding shareholders are locked in for at least 6 or 12 months after flotation.