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

question 32

Multiple Choice

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

• A)Temporary support of the market price of IPO shares
• B)Maximization of the return to a firm's original owners from an initial spike in the market price of IPO shares
• C)Increase in the volume of trading for shares of a recent IPO
• D)Limitation on the price volatility of recent IPO shares caused by day trading
• E)Guarantee of a minimum number of sold shares for an IPO

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Definitions:

PATCO Strike

Refers to the 1981 strike by the Professional Air Traffic Controllers Organization in the United States, which resulted in the firing of striking employees.

Labor Relations

The professional and legal relationship between employees and employers, focusing on collective bargaining, union activities, and workplace disputes.

Permanent Strike Replacements

Workers hired to permanently take the positions of employees who are on strike, often used by employers as a strategy to undermine strike effectiveness.

Bargaining Power

The advantage one party has over the other in negotiations, often derived from one's ability to influence the outcome or offer something of value.