What Is the Primary Purpose of a Lockup Agreement

Multiple Choice

What is the primary purpose of a lockup agreement?

A) Ensures the lead underwriter maintains an economic interest in the IPO it is managing
B) Ensures the issuer of new securities receives a minimally agreed upon amount from the issue
C) Ensures no research reports are issued during the waiting period
D) Ensures company insiders maintain an economic interest in the issuer of an IPO for a minimum period of time
E) Ensures an IPO is not underpriced by more than 5 percent