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Greenshoe, or over-allotment clause, is the term commonly used to describe a special arrangement in a U.S. registered share offering, for example an initial public offering (IPO), which enables the investment bank representing the underwriters to support the share price after the offering without putting their own capital at risk. [1]
1 lut 2024 · A greenshoe option is a provision in an IPO underwriting agreement that grants the underwriter the right to sell more shares than originally planned. It is also known as an over-allotment...
22 wrz 2024 · A greenshoe is a clause contained in the underwriting agreement of an initial public offering (IPO) that allows underwriters to buy up to an additional 15% of company shares at the offering price.
30 cze 2022 · A greenshoe option, also known as an “over-allotment option,” gives underwriters the right to sell more shares than originally agreed on during a company’s IPO. These provisions can help underwriters meet higher-than-expected demand up to a certain percentage above the original share number.
29 wrz 2020 · What is a Green Shoe Option? A green shoe option is a clause contained in the underwriting agreement of an initial public offering (IPO).
19 wrz 2024 · A greenshoe option, also known as an over-allotment option, is a provision in an underwriting agreement that allows underwriters to sell additional shares beyond the initial offering amount during an initial public offering (IPO).
A greenshoe option can provide additional price stability to a security issue because the underwriter has the ability to increase supply and smooth out price fluctuations. It is the only type of price stabilization measure permitted by the Securities and Exchange Commission (SEC).
