Greenshoe option

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Greenshoe option

 Option that allows the underwriter for a new issue to increase the size of the issue because of high demand for the shares.

Greenshoe Option

A provision in some underwriting contracts allowing the underwriter to sell more shares to investors than were originally agreed. In an underwriting agreement, the underwriter agrees with the issuer of a security to place a certain amount with investors. If demand for the security exceeds the underwriter's supply, the greenshoe option allows the underwriter to avoid a sudden jump in price by increasing supply. Normally, the greenshoe option allows the underwriter to increase supply up to 15%. It is important to note that not all underwriting contracts have greenshoe options, especially in situations in which the issue is for a limited project for which the issuer only needs a certain amount of capital. It is also called an overallotment option.
References in periodicals archive ?
While the "Jeopardy" theme played in my head, I had to select from two sizes of Keen gargoyle/garden green shoes or the men's bungee cord Teva choice.
5, 2013 /PRNewswire/ -- Directors and friends of Rogers InHealth recently stepped out in lime green shoes to send a message of support to Brandon Marshall, the Chicago Bears wide receiver who was fined $10,500 for wearing lime green shoes last month.
Never pair a green dress with green shoes, you end up looking like a block of colour.
He is believed to be wearing either jeans or black pyjama bottoms, a pyjama top with a Loony Tunes motif on it, a green Berghaus waterproof jacket or fleece, and green shoes with a brown stripe.
The bridesmaids wore emerald green dresses, which were the perfect match to Abbie's sequined green shoes.
cheryl cole Aw, Cheryl pet, you're a pretty lass, but those almost-tropical trousers with those green shoes and that pineapple hairdo, we think you look less the nation's sweetheart, more national park.
Shoes from left to right: leopard print flat sandals, pounds 13; coral court shoes, pounds 30; pink wedge sandals, pounds 32; and navy and green shoes, pounds 42.
Geometric stilettos, pounds 85 Flatties, pounds 65 Red platform stilettos, pounds 85 Sandals pounds 80 Green shoes pounds 85 from the PPQ for Office collection
Recognized global brands are said to now make green shoes, green cars and green electronics from these biological TPU polyester and polyether-based product ranges.
Nadal, decked out in black with electric green shoes and accents on his shirt, served up seven aces and pounded in 67 percent of his first serves in a match that lasted nearly three hours.
uk Indulge yourself with a clear conscience by treating a special someone to this bag by Green Shoes, one of the UK's leading ethical footwear and accessory companies.
Whenever I step on to a course nowadays, I wear a green jumper, green trousers, green shoes and a green balaclava, so I'm almost completely camouflaged and no-one can notice me hacking my way around like a demented lumberjack.