Knowee
Questions
Features
Study Tools

An entrepreneur can cash out immediately after the completion of an initial public offering (IPO).Group of answer choicesTrueFalse

Question

An entrepreneur can cash out immediately after the completion of an initial public offering (IPO).

Group of answer choices
True
False

🧐 Not the exact question you are looking for?Go ask a question

Solution

The statement is True. An entrepreneur, or anyone holding shares in a company that goes public through an initial public offering (IPO), can typically sell their shares immediately after the IPO is completed, subject to certain conditions and lock-up periods.

However, in many cases, founders and early investors may be subject to lock-up agreements, which prevent them from selling their shares for a specified period after the IPO (often 90 to 180 days). Nonetheless, if there are no such restrictions in place, they can indeed cash out immediately after the IPO.

It's important to review the specific terms associated with the IPO and any agreements that may be in effect.

This problem has been solved

Similar Questions

The following is an example of seasoned offerings:Multiple choice question.an IPOdebt issuesecondary offeringprivate purchase agreement

Which is refers to the process of offering shares of a private corporation to the public in a new stock issuance.a.POb.NPOc.IPOd.UPO

Which of the following is NOT a part of the primary market?(1.0 Marks)Initial Public Offer (IPO)AFollow-On Public Offer (FPO)BOffer For Sale (OFS)CBonus Issue

suppose a company issues 30 per cent of its stock for the first time, it is IPO. now next when it issues the remaining 70 per cent shares,is it IPO

Venture capital firms provide debt funding so the entrepreneur will not have to give up equity.Group of answer choicesTrueFalse

1/1

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.