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What is a lock-up period following an IPO?

  1. A A period during which insiders are restricted from selling their shares
  2. B A trading halt on the exchange
  3. C The book building window
  4. D The regulatory review period
Answer

A period during which insiders are restricted from selling their shares

It prevents an immediate supply overhang and signals insider confidence, with expiry often coinciding with share price weakness.

All Investment Banking MCQs

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