Series 79 practice questionmediumLock-Up Agreements
Who has the authority to waive or release lock-up agreements early?
- AThe SEC must approve any early release from lock-up
- BLock-up agreements cannot be waived under any circumstances
- COnly the company's board of directors can release insiders from lock-up
- DThe lead underwriter typically has sole discretion to waive or modify lock-up restrictions✓ Correct answer
Explanation
Why D — The lead underwriter typically has sole discretion to waive or modify lock-up restrictions
The lead bookrunner typically controls contractual waivers. FINRA Rule 5131(d)(2)(B) requires notice to the issuer and a public announcement at least two business days before a covered release or waiver, subject to stated exceptions.
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