WHAT IS GREEN SHOE OPTION?
Answer / naman
The greenshoe option is a clause in the underwriting
agreement of an IPO, which allows to sell additional shares,
usually 15%, to the public if the demand exceeds
expectations and the stock trades above its offering price.
This option, also known as the over-allotment provision. It
gets its name from the Green Shoe company, which was the
first company to allow such an option.
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