The Purpose of a Lockup Provision Is to ​

question 69

Multiple Choice

The purpose of a lockup provision is to ​

• A)keep individual investors from buying and selling stock.
• B)prevent downward pressure on the stock's price.
• C)increase the number of outstanding shares.
• D)allocate a larger proportion of stock to institutional investors.

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Definitions:

Economy

The system of production, distribution, and consumption of goods and services in a particular geographic region or country.

Business Cycle Dating Committee

A group of economists that determines the dates of the beginning and end of recessions, marking the business cycle's phases.

Peaks And Troughs

Describes the high and low points in economic, financial, or business cycles, indicating periods of maximum and minimum activity or value.

Real GDP

Gross Domestic Product adjusted for inflation, which reflects the value of all goods and services produced by an economy in a year, measured in constant prices.