Greenshoe Option
(redirected from Over-Allotment)

0.01 sec.

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.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		Financial browser	?		Full browser	?
Green Shoe Clause Greenshoe Overallotment Overallotment Option			Outlier Outorgado Outorgante outparcel Outperform Output Gap Output Tax Outright Futures Position Outright Quote Outright Rate Outside Audit Outside Director Outside Earnings Outside Market Outside of you Outside Reversal Outsourcing Outstanding outstanding balance Outstanding Capital Stock Outstanding Debt Outstanding Dividends Outstanding share capital Outstanding Shares Over the Counter Over-Allotment over-and above money Over-Hedging Over-the-Counter Over-the-Counter Bulletin Board Over-the-Counter Market Over-the-Counter Option Over-the-Counter Stock Overadvance overage overall capitalization rate Overall FTC limitation Overall Market Price Coverage overall rate of return Overallotment Overallotment Option Overapplied Overhead Overbase Compensation Overbooked Overborrowed Overbought Overbought-Oversold Indicator overbuilding Overcapitalization Overcharge Overcollateralization			Over Used Over Voltage Over Voltage Ground Relay Over Voltage Protection Over Voltage Protection Relay Over weight Over weight Over weight Over Weight Truck Over Wing Fairing over with over with over with Over Worked Under Paid Over Year Ago Over Your Dead Body Over, Short & Damaged Over, Short and Damaged Over, Short and Damaged Over, Short and Damaged Report Over, Short, & Damaged Over, Short, and Damaged Over, Short, and Damaged over- Over-Absorbed Overhead Over-acting Over-acting Over-Action Dolphin Over-Active Bladder over-age Over-Allotment Over-allotment option Over-Allotment Options over-and above money Over-And-Under Over-Applied Overhead Over-arm Over-Base Compensation over-bite over-bite over-bite Over-Borrowed Over-busy Over-By-Over Over-capacity over-charge Over-Clocked Processor Over-Complete Dictionary Over-Complete Wavelet Transform Over-Constrained Dispatch Over-consumption over-correct Over-Crossing over-crowding Over-Current Latchup Protection Over-damping Over-damping Over-damping OVer-DEDuction

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.

Greenshoe Option (redirected from Over-Allotment)

Greenshoe Option
(redirected from Over-Allotment)