Concerning a New Issue of Stock, a Lock-Up Refers to

question 11

Multiple Choice

Concerning a new issue of stock, a lock-up refers to

• A) a guaranteed profit on the initial purchase
• B) a guaranteed profit to the underwriter
• C) the requirement that shares purchased by insiders prior to an initial public offering
• Must retain those shares for a specified period
• D) initial buyers of the stock in the IPO must hold the shares for a specified period of time

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Definitions:

Anal Stage

A phase in Freudian psychosexual development occurring roughly between the ages of 18 months and three years when children focus on bowel and bladder control.

Anal Character

A personality type that Freud theorized is characterized by orderliness, stubbornness, and a focus on control as a result of certain experiences during the anal stage of psychosexual development.

Dependence

A state in which there is a reliance on or need for something or someone for support or to function properly.

Regression

In psychology, regression is a defense mechanism that leads an individual to revert to a previous stage of development or to earlier, less sophisticated behaviors in response to stress or anxiety.