What does the lock-up period of stock ownership plan mean?

The lock-up period of stock ownership plan refers to the period during which the shares held by shareholders are "locked" and cannot be transferred within a certain period after a listed company issues a stock issuance plan. This period usually depends on the specific circumstances of the stock issuance of listed companies, generally ranging from one year to three years. The lock-up period is mainly set to ensure the stable operation and stock price stability of listed companies.

The lock-up period of equity plan is both an opportunity and a challenge for shareholders. If the performance of listed companies is good and the share price rises, shareholders can sell their shares at a higher price after the lock-up period and earn huge profits. However, if the performance of listed companies is poor and the share price falls, shareholders will not be able to transfer their shares before the end of the lock-up period, and they can only watch their shares depreciate.

Generally speaking, the lock-up period of equity plan is one of the important measures to standardize market order and protect investors' rights and interests. This can enhance shareholders' awareness of long-term investment, help listed companies to establish good long-term development strategies, and further enhance the company's value and competitiveness. At the same time, shareholders also need to pay attention to the company's operating conditions and market trends in order to better grasp the investment opportunities after the lock-up period.