Exchange Currency

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.

Related information about green shoe:
  1. Greenshoe - Wikipedia, the free encyclopedia
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  2. Greenshoe Option Definition | Investopedia
    A provision contained in an underwriting agreement that gives the underwriter the right to sell investors more shares than originally planned by the issuer.
     
  3. What is green shoe? definition and meaning - InvestorWords.com
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  6. Green Shoe Clause - Financial Dictionary - The Free Dictionary
    A provision in some underwriting contracts allowing the underwriter to sell more shares to investors than were originally agreed. In an underwriting agreement, ...
     
  7. What is green shoe? definition and meaning - BusinessDictionary.com
    Definition of green shoe: A provision in an Initial Public Offering (IPO) underwriting agreement in which the company agrees to sell additional shares to the ...
     
  8. Green Shoe Option Definition & Example | InvestingAnswers
    We explain the definition of Green Shoe Option, provide a clear example of how it works and explain why it's an important concept in business, finance ...