A standstill agreement prevents an investor who has signed the agreement from ever again buying stock in the target firm.

Question

Quizplus · Accepted Answer

A standstill agreement is a legal agreement in which an investor agrees not to purchase any more shares in a company for a specified period of time. After this period, the investor may be free to purchase more shares. So, a standstill agreement does not prevent an investor from ever buying stock in the target firm again.

A Standstill Agreement Prevents an Investor Who Has Signed the Agreement