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A Lockup Agreement

Question 34

Multiple Choice

A lockup agreement:


A) temporarily supports the market price of IPO shares.
B) maximizes the return on an IPO to a firm's original owners.
C) increases the volume of trading for shares of a recent IPO.
D) limits price volatility on the first day shares of an IPO trade.
E) guarantees a minimum number of IPO shares sold.

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