green shoe
A provision in an underwriting agreement which allows members of the underwriting syndicate to purchase additional shares at the original. This is a useful provision for underwriters in the event of exceptional public demand. The name comes from the fact that Green Shoe Company was the first to grant such an option to underwriters. also called overallotment provision.
Popular 'IPOs' Terms
Related Personal Finance Articles
Loading...
green shoe in the news
Loading...
Enter your email address to get our free Term of the Day newsletter!
green shoe is ...
... part of the IPOs subject.







