Steve Is the Founder of Jefferson & Westover

question 54

Essay

Steve is the founder of Jefferson & Westover.Recently,the firm decided to issue an IPO with Steve retaining 30 percent ownership of the firm.The IPO agreement contained both a Green Shoe provision and a 6-month lockup agreement.Steve's cost basis per share is $15.The offering price for the IPO was $16.On the first day of trading,the market price per share rose to $28.20 and closed for the day at $25.60.Now,six months after the IPO release,the stock is valued at $15.40 a share.Explain who benefited the most during the lockup period,an outside investor or Steve,and why.

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Definitions:

Parental Smoking

The act of smoking cigarettes or other tobacco products by parents, which can influence children's health risks and smoking behaviors.

Peer Group Smoking

The influence that a group of peers may have on an individual's decision to start or continue smoking.

Occupational Ethics

A set of principles and standards that guide behavior and decision-making in a specific profession or workplace.

Honesty Ratings

Measures or evaluates the extent to which an individual or entity is perceived as truthful and sincere.