IPO Exit Limitation

This problem tests whether you understand that an IPO is not the same as an immediate cash exit, and that public listings come with timing restrictions that affect liquidity. In private equity and leveraged buyout interviews, bankers ask this because exit timing is a core part of investment returns, and candidates need to think beyond the headline event to the practical mechanics of monetization. The question also reinforces awareness of the IPO process itself, including the delay before shares can actually be sold and the constraints that can leave existing owners exposed after the listing.