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What is a Green Shoe Option?
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Answer / laymanblog
Its basically giving an additional rights to the merchant
banker/underwriter who acts as a mediator in selling the
shares which are issued in IPO's to sell more shares that what
they are supposed to sell. The Green Shoe Company was the
first company to execute this option, so this was called as
Green Shoe Option.
| Is This Answer Correct ? | 6 Yes | 1 No |
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