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

question 70

Multiple Choice

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

• A)Temporarily supporting the market price of IPO shares
• B)Maximizing the return to a firm's original owners from an initial spike in the market price of IPO shares
• C)Increasing the volume of trading for shares of a recent IPO
• D)Limiting the price volatility of recent IPO shares caused by day trading
• E)Guaranteeing a minimum number of sold shares for an IPO

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Definitions:

Scented Candles

Candles infused with fragrant oils that release a pleasant aroma when burned, often used for relaxation, ambiance, or aromatherapy.

Marginal Utility

The increased contentment or advantage obtained by the consumption of an extra unit of a good or service.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit to consumers from participating in the market.

Utility

Utility refers to the total satisfaction received from consuming a good or service.