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Greenshoe Option

   Also found in: Wikipedia 0.57 sec.
Greenshoe Option
An option that allows the underwriting of an IPO to sell additional shares to the public if the demand is high.

Notes:
The name comes from the fact that the Green Shoe Company was the first to issue this type of option.

See also: IPO, Underwriting

Greenshoe option
 Option that allows the underwriter for a new issue to buy and resell additional shares.

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6 billion), with a further greenshoe option of 15%.
6 billion), with a further greenshoe option of 15%.
Nalco Holding Company (NYSE:NLC) today announced the underwriters of its secondary stock offering have exercised their so-called Greenshoe option to purchase an additional 4.
 
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