The Primary Purpose of a Lockup Agreement Is to Ensure

question 8

Multiple Choice

The primary purpose of a lockup agreement is to ensure

• A)the lead underwriter maintains an economic interest in the IPO it is managing.
• B)company insiders maintain an economic interest in the issuer of an IPO for a minimum period of time.
• C)research reports are issued.
• D)the issuer of new securities receives a minimally agreed upon amount from the issue.
• E)investors purchasing shares at the offer price hold those shares for a stated number of days following the IPO.