Rename Signature Service Registration Rights Agreement For Free

What Is Registration Right? A registration right is a right entitling an investor who owns restricted stock to require that a company list the shares publicly so that the investor can sell them. Registration rights, if exercised, can force a privately-held company to become a publicly-traded company.

The Holder waives any rights the Holder may have had with respect to registration of the Exchange Securities under the Securities Act and confirms that the Company is under no obligation to register the Securities pursuant to the Securities Act.

The lock-up period most commonly extends 180 days from the IPO date. During that period, investors holding pre-IPO shares may not sell their shares. This helps reduce stock price volatility in the days and weeks after the IPO or other liquidity event. Hence, registration rights agreements.

A registration right is a right entitling an investor who owns restricted stock to require that a company list the shares publicly so that the investor can sell them. Registration rights, if exercised, can force a privately-held company to become a publicly-traded company.

Demand registration rights enable the stockholder to require the issuer to register all or a portion of its shares. Piggyback registration rights allow a stockholder to include shares in a registration being effected by the issuer either for its own account or for the benefit of other selling stockholders.

Selling unregistered shares is typically considered a felony, but there are exceptions to this rule. SEC Rule 144 lays out the conditions under which unregistered shares may be sold: They must be held for a prescribed period. There must be adequate public information about the security's historical performance.