Lock In
Lock-in is a specified period during which an investor is restricted from selling shares or other financial instruments. This mechanism is designed to prevent the price and liquidity of the asset from fluctuating dramatically due to sudden sales. A lock-in period is often applied to shares held by promoters, major shareholders, or in certain types of investment funds. For example, in mutual funds, lock-in periods are common in close-ended funds and Equity-Linked Savings Schemes (ELSS), where investors are required to hold their investments for a specified time, typically ranging from 3 to 5 years.
Related Terms
Equity Capital Markets
Equity Capital Markets (ECMs) refer to the platform where companies raise capital by offering equity...
Interest Rate Futures
Interest rate futures are derivative contracts based on interest-bearing instruments, such as bonds or loans....
Returns Direct
Direct mutual fund plans generally offer higher returns than regular plans, even though both invest...
Index Arbitrage
Index arbitrage is a trading strategy that aims to generate returns by exploiting short-term price...
Common Stocks
Common stock is a type of share that grants the holder the right to a...
Go Public
To 'go public' means a company gets listed on the stock market by launching an...
