Weekly Theme: IPO
An option which allows the underwriters to oversell, max. up to 15% of the specified amount of shares during an IPO. Name the type of the option and from where does it derives its name.
Answer: (Please highlight the text below)
An option which allows the underwriters to oversell, max. up to 15% of the specified amount of shares during an IPO. Name the type of the option and from where does it derives its name.
Answer: (Please highlight the text below)
Greenshoe option.
It derives its name from the Green Shoe company of US which used it for the first time.
Greenshoe Option
ReplyDeleteGreenshoe was the first company to do this and hence the name
Greenshoe or over-allotment option.
ReplyDeleteIt derives its name from the Green Shoe company of US which used it for the first time.
GreenShoe Option- green shoe manufacturing now known as (stride rite corporation).
ReplyDelete