In an agreement referred to as a , underwriters of an IPO typically require most shareholders to agree not to sell or otherwise transfer their shares for at least six months after completion of an IPO.

A lock-up

Explanation:

A lockup agreement is defined as a

binding contract made between the insiders and underwriters of a company during its initial public offering (IPO) that prohibits them from selling any of their shares for a set period of time. These individuals may include venture capitalists, company directors, managers, executives, employees, and their family and friends.

A lock-up agreement is a contractual provision preventing insiders of a company from selling their shares for a specified period of time. They are commonly used as part of the initial public offering (IPO) process.

Lockup agreements prohibit company insiders including employees, their friends and family, and venture capitalists from selling their shares for a set period of time. The terms of lockup agreements may vary,

Lock-Up Agreement.

Explanation:

This question takes us to securities and investment institution. In order to understand this question very well I will be explaining some of the Important terms in the question above and they are; underwriters, IPO and Lock-Up Agreement.

==> Underwriters are known as the securities company or investment company.

==> IPO is an acronym that stands for Initial Public Offering. The Unitial Public Offering process is a process whereby underwriters sell securities.

==> Lock-Up Agreement is a kind of agreement that is given in the question above, that is to say it is an agreement where; '' underwriters of an IPO typically require most shareholders to agree not to sell or otherwise transfer their shares for at least six months after completion of an IPO".

This means that the their is an agreement which makes shareholders not to be able to sell their stakes for a given period of time.

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