reverse greenshoe option


A provision often included as part of a public offering that allows the underwriter the ability to sell shares of the stock back to the issuer at a later date. This provision is meant to protect the buyer in the event that the stock price should fall. If the stock price does in fact fluctuate negatively the underwriter would buy a bulk number of shares that are on the market in hopes of stabilizing the stocks price.
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reverse convertible note (RCN) reverse hedge