Greenshoe option

Greenshoe option,

Definition of Greenshoe option:

  1. A greenshoe option is an over-allotment option. In the context of an initial public offering (IPO), it is a provision in an underwriting agreement that grants the underwriter the right to sell investors more shares than initially planned by the issuer if the demand for a security issue proves higher than expected.

  2. Over-allotment options are known as greenshoe options because, in 1919, Green Shoe Manufacturing Company (now part of Wolverine World Wide, Inc. (WWW) was the first to issue this type of option. A greenshoe option provides additional price stability to a security issue because the underwriter can increase supply and smooth out price fluctuations. It is the only type of price stabilization measure permitted by the Securities and Exchange Commission (SEC).

  3. The ability for a stockbroker to offer more stocks to clients even though the original stock issue had a specific amount of shares to be sold.

How to use Greenshoe option in a sentence?

  1. Greenshoe options provide buying power to cover short positions if prices fall, without the risk of having to buy shares if the price rises. .
  2. Greenshoe options typically allow underwriters to sell up to 15% more shares than the original issue amount.
  3. A greenshoe option was first used by the Green Shoe Manufacturing Company (now part of Wolverine World Wide, Inc.).
  4. Greenshoe options provide price stability and liquidity.
  5. A greenshoe option is an over-allotment option in the context of an IPO.

Meaning of Greenshoe option & Greenshoe option Definition

Greenshoe Option,

What Does Greenshoe Option Mean?

  1. The definition of Greenshoe Option is: The green shoe option is the overbatch option. In the context of an initial public offering (IPO), it is a provision in a purchase agreement that provides for more than the plan to sell the lead manager to investors if the demand for securities exceeds expectations. Provides the right to sell shares.

    • The Greenshow option is an over-distribution option as part of an IPO.
    • The green shoe option was first used by Green Shoe Manufacturing Company (now part of Wolverine Worldwide Inc.).
    • Greenshow options generally allow underwriters to sell up to 15% more shares than the initial issue amount.
    • The Greenshow option guarantees price stability and liquidity.
    • Green shoe options provide a purchasing power to cover a short position when prices rise.

Literal Meanings of Greenshoe Option

Option:

Meanings of Option:
  1. Anything that can or will be selected.

  2. Freedom, power or the right to choose.

  3. The right to buy or sell a particular item at a particular time.

  4. Aggressive sport in which the ball carrier has the option to run, pass, pass or walk around.

  5. Transfer of players (in minor league teams) with retirement option.

  6. This is not feasible.

  7. Don't collide.

Sentences of Option
  1. Most of the time will be devoted to the chosen option, but each participant will gain experience in another area.

  2. The Daily said the work that would add to the width of the corridor was not a viable option due to the high cost of the building's design.

  3. It takes five years for a bull to enter commercial production, so leasing is not a viable option.

  4. As principal, he said, he can't force young people to wear uniforms, but the school hopes parents will see it as a practical option.

  5. Now, patients are asked to choose between two options if they want to continue exercising.

  6. Individual panels are also a practical option, as they are easy to clean from broken surfaces with unsafe mortar lines.

  7. Holster turned out to be a practical choice to give this chair a new look.

  8. For losers, advisers were asked Tuesday night to choose between two options.

  9. It seems that after months of debate and political position, none of the four choices have been defended.

  10. The committee will now meet on September 17 to choose from options.

  11. People who own a car are more likely to choose one.

  12. Candidates can choose from the following options through touch screen.

Synonyms of Option

course of action, alternative, recourse, possibility

Greenshoe Option,

Greenshoe Option:

  • Meaning of Greenshoe Option: The green option is the distribution option. In the context of an initial public offering (IPO), it is a condition of the purchase agreement that gives the lead manager the right to sell more shares than plans to sell to the issuing investors if the demand for the bond issue is expected. Be more than . .

    • The green option is a higher attribution option as part of the IPO.
    • Green Sea Manufacturing Company (now part of Wolverine Worldwide, Inc.) used the green option for the first time.
    • Greens Options generally allows underwriters to sell 15% more shares than the initial issue value.
    • The green option guarantees stability and liquidity.
    • The green option provides buying power, protects the SRT position when it goes down, without the risk of buying it when the stock goes up.

Literal Meanings of Greenshoe Option

Option:

Meanings of Option:
  1. The right to buy or sell certain items at a specific price within a specified time.

  2. Aggressive sport in which the ball carrier has the option to run, pass, pass or walk sideways.

  3. Player transfer (in minor league teams) with retirement option.

  4. Don't face

Sentences of Option
  1. The Daily said the work, which would include extending the corridor, was not a viable option, given the high cost of building design.

  2. As principal, he said he could not force young people to wear uniforms, but the school hoped parents would see it as a practical option.

  3. Individual panels are also a practical option because they are easier to clean than surfaces that are broken by unsafe mortar lines.

  4. Sarong proved to be a practical choice to give this chair a new look.

  5. For the losers, consultants were asked Tuesday night to choose between two options.

  6. It seems that after months of debate and political positioning, none of the four options have been defended.

  7. The committee will now choose one of the options on September 17.

  8. Choose the best possible option for the best course suggested for students.