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Which One of the Following Is an Intended Result of a Lockup

Question 70

Multiple Choice

Which one of the following is an intended result of a lockup agreement?


A) Temporarily supporting the market price of IPO shares
B) Maximizing the return to a firm's original owners from an initial spike in the market price of IPO shares
C) Increasing the volume of trading for shares of a recent IPO
D) Limiting the price volatility of recent IPO shares caused by day trading
E) Guaranteeing a minimum number of sold shares for an IPO

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