what is the green shoe option referred to in stock market

Answer Posted / inderdeep

if a stock is over subscribed, the company has a option of allocating shares in excess of the shares included in the public issue.
if the company goes 4 this option its known as green shoe option.
green shoe option can be exercised for a maximum of 15% of the size of the issue

Is This Answer Correct ?    1 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

Tell the location of Asia`s largest solar park.

663


What is foreign exchange?

770


How is cash flow statement different from a funds flow statement?

610


Does leasing release the firm from bad investment? Explain.

611


What idea do you have about subprime lending?

633






How can a Business firm achive growth Internally and Externally?

5716


Difference between debit card and credit card

596


What do you understand from 'internet banking'?

648


What is Statement in Lieu of Prospectus?

646


What is 'current deposit account'?

635


What is mean by Duty-Draw Back? And what's of benefit under Duty-Drawback?... Please explain.

1728


What is CBS (Core Banking Solution)?

621


Must I Produce Tax Returns Before And After My Bankruptcy?

602


what are the fundamental reasons behind the present worldwide economic downturn?

1991


What are various qualities one should possess to become a Bank Officer? Do you think you possess those?

647