A restriction under which investors cannot withdraw their funds for as long as several months or years is called ________.
A) transparency
B) a lock-up period
C) a back-end load
D) convertible arbitrage

Question

Quizplus · Accepted Answer

A lock-up period is a restriction placed by the fund manager on investors, which prevents them from withdrawing their capital for a certain period of time, typically several months or years. This is often seen in hedge funds, private equity funds, and other alternative investment vehicles. The purpose of the lock-up period is to provide stability and continuity to the fund's investment strategy, and to discourage investors from making short-term or impulsive decisions.

A Restriction Under Which Investors Cannot Withdraw Their Funds for as Long