IPO Lockup Period

This question tests a candidate’s understanding of how equity offerings are structured and why post deal restrictions matter for market stability. In an IPO, interviewers want to see that you understand the role of a lockup in limiting immediate selling by insiders and early investors, and how that helps manage supply, support orderly trading, and reduce pressure on the newly listed stock. It also reflects a broader theme in capital markets interviews, which is connecting deal mechanics to investor behavior and price formation.