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The Primary Purpose of a Lockup Agreement Is to Ensure

Question 28

Multiple Choice

The primary purpose of a lockup agreement is to ensure


A) the lead underwriter maintains an economic interest in the IPO it is managing.
B) company insiders maintain an economic interest in the issuer of an IPO for a minimum period of time.
C) research reports are issued.
D) the issuer of new securities receives a minimally agreed upon amount from the issue.
E) investors purchasing shares at the offer price hold those shares for a stated number of days following the IPO.

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