Which One of the Following Is an Intended Result of a Lockup

question 32

Multiple Choice

Which one of the following is an intended result of a lockup agreement?

• A)Temporary support of the market price of IPO shares
• B)Maximization of the return to a firm's original owners from an initial spike in the market price of IPO shares
• C)Increase in the volume of trading for shares of a recent IPO
• D)Limitation on the price volatility of recent IPO shares caused by day trading
• E)Guarantee of a minimum number of sold shares for an IPO

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Definitions:

Christianity

A monotheistic religion based on the life and teachings of Jesus Christ, its central figure.

New Netherland

A 17th-century colonial province of the Dutch Republic that encompassed parts of modern Northeastern United States, including New York, New Jersey, and Delaware.

Legal Identity

The lawfully recognized personality under which an individual or entity has rights, duties, and is subject to legal actions.

Indentured Servants

Individuals who agreed to work for a certain number of years in exchange for passage to the New World and eventual freedom; a common practice in the American colonies.