8.3 General Remarks on the Management of Risk 323If existing shareholders keep their shares and promise not to exit the firm in the
near future (lock-up), new investors might be willing to pay more. However, there
is still the risk that the price is too high; a high price would dilute the holdings of
existing shareholders less. If new but knowledgeable long-term institutional inves-
tors are prepared to subscribe for the shares at that price, less professional inves-
tors might assume that the price is not too high.