greenshoe

greenshoe
Named after a US case, a means of stabilising a new share issue. An option is given to the global co-ordinator of a bookbuilding or price stabilisation exercise to acquire more shares in order to stabilise the market in the immediate post-offer period.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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  • greenshoe — green‧shoe [ˈgriːnʆuː] noun [uncountable] FINANCE when a financial institution sells all the available shares in a company s share issue or secondary and then sells more, or the number of shares sold in this way; = OVERALLOTMENT: • The issue will …   Financial and business terms

  • greenshoe — option An option given by an issuer of securities to an underwriter entitling the latter to buy and sell extra shares in an issue if there is high public demand. The term derives from the first company to provide such an arrangement, the Green… …   Big dictionary of business and management

  • Greenshoe — A greenshoe (sometimes green shoe ), legally called an over allotment option (the only way it can be referred to in a prospectus), gives underwriters the right to sell additional shares in a registered securities offering at the offering price,… …   Wikipedia

  • Greenshoe — Eine Greenshoe Option (auch Over allotment Option oder Mehrzuteilungsoption) ist eine Wertpapierreserve eines Emittenten (Aktiengesellschaft) bei einem Börsengang im Rahmen eines Bookbuilding Verfahrens. Genauer handelt es sich um eine Call… …   Deutsch Wikipedia

  • Greenshoe-Element — Eine Greenshoe Option (auch Over allotment Option oder Mehrzuteilungsoption) ist eine Wertpapierreserve eines Emittenten, sprich einer Aktiengesellschaft, bei einem Börsengang im Rahmen eines Bookbuilding Verfahrens. Genauer handelt es sich um… …   Deutsch Wikipedia

  • Greenshoe Option — A provision contained in an underwriting agreement that gives the underwriter the right to sell investors more shares than originally planned by the issuer. This would normally be done if the demand for a security issue proves higher than… …   Investment dictionary

  • greenshoe option —   Etimologicamente significa scarpa verde , poiché così si chiamava la prima società a utilizzarla a Wall Street. E chiamata altresì opzione di sovrallocazione od in inglese opzione di overallotment . La greenshoe option consiste in una riserva… …   Glossario di economia e finanza

  • Greenshoe option — Option that allows the underwriter for a new issue to buy and resell additional shares. The New York Times Financial Glossary * * *    A provision in the underwriting agreement for a share issue that allows the sale of additional shares to the… …   Financial and business terms

  • greenshoe option — option that allows the underwriter for a new issue to buy and resell additional shares. Bloomberg Financial Dictionary * * *    A provision in the underwriting agreement for a share issue that allows the sale of additional shares to the public if …   Financial and business terms

  • Greenshoe Option — A means of stabilising a new issue. The manager of the issue takes a short position in the stock which is covered by an option on new shares to be issued by the company. If the share price after the issue rises above the exercise price of the… …   Financial and business terms

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