Glossary · Financing
Hold period
The four-month minimum holding period for shares issued via private placement in Canada.
Under Canadian securities law, shares issued via private placement carry a 4-month + 1-day hold period during which the holder cannot resell them on the public market. The hold period exists to prevent immediate flipping. After the hold period expires, the shares become 'free trading' and may be sold publicly — this often triggers selling pressure on the issuer's stock that traders watch for.