A Restriction That Prevents Existing Shareholders from Selling Their Shares

question 103

Multiple Choice

A restriction that prevents existing shareholders from selling their shares for some period after an IPO is called:

• A)a greenshoe provision.
• B)book building.
• C)a secondary offering.
• D)a lockup.
• E)a red herring.

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Definitions:

Financing Activities

Transactions that result in changes in the size and composition of the equity and borrowings of an organization.