unlock date
n. The date following an initial public offering of stock when the company's management, employees, and large shareholders are allowed to sell their shares on the open market.
Anyone who's done much investing, particularly in IT start-ups, probably knows about the concept of unlock dates. It's the date "following an IPO that shares held by insiders and large shareholders can be sold in the open market", according to UnlockDates.com's definition.
—Jed Bowtell, “Useful sites and downloads,” Sydney Morning Herald (Australia), March 21, 2000
If the stock still looks too high, check it again in 180 days. That's the typical "end of lockup date," when the company's insiders can sell. Typically, they unload big and the stock price drops. On average, companies that were seeded by venture-capital firms drop triply hard as the VCs bail out, Field says. You'll find the unlock dates at IPO Plus's Web site, ipohome.com.
—Jane Bryant Quinn, “Jumping Over the Moon,” Newsweek, February 14, 2000
1998 (earliest)
At day 181, the fire hose hits. Everyone and his brother is unlocked. If the stock is at lofty levels, they will blow out, or try to, all at the same time. It is uncommon for any stock to trade up when shares are unlocked. Shorts try to outguess the market and short stocks ahead of the unlock date, figuring they will buy distressed shares lower.
—Andy Kessler, “IPO = Inefficient Public Offering,” TheStreet.com, August 11, 1998
Filed Under