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Friends and Family Stock

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Friends and Family Share
Stock that is sold to executives in a company or their friends and relatives before an IPO. This helps the company raise financing before its IPO. However, the issue of friends and family stock can lead to conflict of interest and, as such it must abide by applicable laws.

friends and family stock
The shares of an initial public offering that are allocated to individuals designated by executives of the firm being taken public.


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