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Overallotment Option |
Also found in: Wikipedia | 0.02 sec. |
Overallotment Option A provision in some underwriting contracts allowing underwriters to buy more shares in a new issue at the original offer price. Some companies set aside a certain number of shares for the overallotment option, while others require secondary trades to fill the option should it be exercised. Most companies put a time limit on when the overallotment option may be exercised. It is also known as a greenshoe. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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