A lock-up agreement is a legally binding contractual agreement that prevents company insiders, such as executives and shareholders, from selling their shares for a specified period of time. Lock-up agreements are typically used to maintain stability in the stock market by ensuring that large amounts of shares are not dumped onto the market all at once.

The Securities and Exchange Commission (SEC) requires companies to disclose these agreements in their registration statements and periodic reports. This information can be found on the SEC`s website, sec.gov, under the company`s EDGAR filings.

Lock-up agreements are often put in place during initial public offerings (IPOs) or other significant transactions, such as mergers or acquisitions. The agreement usually lasts for 90 to 180 days after the transaction has been completed.

The purpose of a lock-up agreement is to prevent insiders from flooding the market with their shares immediately after the transaction, which could cause a significant drop in share prices. It also shows that the insiders are committed to the long-term success of the company, as they are willing to hold onto their shares for a certain period of time.

It is important for investors to be aware of lock-up agreements, as they can have a significant impact on share prices. If a large number of insiders are prohibited from selling their shares for a certain period of time, it can create a shortage of shares on the market, which can drive up prices. On the other hand, if insiders are allowed to sell their shares all at once after the lock-up period ends, it can cause a significant drop in share prices.

In summary, lock-up agreements are important contractual agreements that prevent insiders from selling their shares for a specified period of time. They are often put in place during significant transactions, such as IPOs or mergers, and are designed to maintain stability in the stock market. Investors should be aware of lock-up agreements and the impact they can have on share prices. To find information on these agreements, investors can visit the SEC`s website, sec.gov, and search for the company`s EDGAR filings.