green shoe investment & finance definition
An offering in which the company issuing securities agrees to issue an additional 10 percent or 15 percent of an offering to their underwriters in order to accommodate strong demand.
Green Shoe Option
What It Is:
A green shoe option is a clause contained in the underwriting agreement of an initial public offering (IPO).
Green Shoe Option
It is a provision contained in the agreement with the underwriter that gives the underwriter the right to sell more securities to the investors than originally agreed upon.
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Green Shoe
An agreement allowing the lead underwriter to buy additional shares of an IPO at the offering price after the IPO begins trading.
Gross Margin ...
Green Shoe
Lets a lead underwriter buy additional IPO shares at an offering price even after IPO trading starts.
Gross Margin ...
Green shoe offering: A new issue in which the issuer grants the underwriters an option or a warrant to purchase up to 15% more shares from the issuer at prices below the public offering price.
Green Shoe option Definition: An underwriter's right to issue more than the stated number of shares of an issue. Named after the Green Shoe Company, which was the first issuer to grant an underwriter such an option.
A greenshoe (sometimes "green shoe"), legally called an "over-allotment option" (the only way it can be referred to in a prospectus), gives underwriters the right to sell additional shares in a registered securities offering at the offering price, ...
Definition
Greenshoe
The Greenshoe Option permits underwriters to sell additional shares if the demand for them is high. The term originally comes from the Green Shoe Company, which first introduced this option.
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green shoe
A provision in an underwriting agreement that if there is an exceptional public demand, an issuer will authorize additional shares for distribution by the syndicate. (See issuer, syndicate, underwriter) H (back to top) ...
green shoe A provision in an underwriting agreement which allows members of the underwriting... greenback The slang term for U. S. paper currency. They are issued by the U. S. Department... Greenland Krone The currency of Greenland.
 See also: Option, Underwriter, Sell, Investment, Share
  
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