Lockup agreement Scotty Blows lamp store went public on July 14, 2010. Three weeks later, Scotty sold

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Lockup agreement Scotty Blow’s lamp store went public on July 14, 2010.

Three weeks later, Scotty sold 47 % of his shares for a profit of $2 million. Why is this a bad thing? Discuss the mechanism designed to eliminate this type of activity.

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