A ________ Requires That the Original Owners of the Firm

question 64

Multiple Choice

A ________ requires that the original owners of the firm maintain ownership of their stock for at least 180 days following an IPO.

• A)green-shoe provision
• B)lock-up agreement
• C)letter of commitment
• D)red herring

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Definitions:

Direct Ownership

A situation where an individual or entity has full control and claim over an asset or property, without any intermediaries.

Contract Manufacturing

The outsourcing of certain production activities to third-party companies, often to save costs or leverage specialized capabilities.

Joint Venture

An arrangement in which a domestic firm partners with a foreign company to create a new entity, thus allowing the domestic firm to enter the foreign company’s market.

Exporting

Selling domestically produced products to foreign markets.