A restriction where investors cannot withdraw their funds for as long as several months or years is called __________.

Question

Quizplus · Accepted Answer

A lock up period is a restriction placed on investors where they cannot withdraw their funds for a certain period of time, usually several months or years. This is commonly used in hedge funds or private equity funds to ensure that the fund manager has a stable pool of capital to invest and can avoid the negative impact of sudden investor withdrawals. Transparency refers to the level of openness and disclosure of information to investors, a back end load refers to a fee charged when selling mutual fund shares, and convertible arbitrage is an investment strategy that seeks to profit from price discrepancies between convertible bonds and the underlying stock.

A Restriction Where Investors Cannot Withdraw Their Funds for as Long