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
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.
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