Financial and business terms

GREENSHOE OPTION

greenshoe option: translation

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 demand is high. Named after the Green Shoe Company which first granted such an option. Sometimes known as an Over-Allotment Option.

* * *

greenshoe optionUKUSnoun[C]FINANCE,STOCK MARKET
►an agreement that allows someone who sells shares for a company to sell more shares than the company had originally planned to sell:»

Greenshoe options typically allow underwriters to sell up to 15% more shares than the original number set by the issuer.

→See alsoOVER-ALLOTMENT(Cf. ↑over-allotment)

  1. greenshoe option—Greenshoe Option translationA provision contained in an underwriting agreement that gives the underwriter the right to sell investors more shares than originally planned ...Investment dictionary
  2. greenshoe option—Опцион зеленого ботинкаОпцион позволяющий андеррайтеру новой эмиссии покупать и перепродавать дополнительные акцииИнвестиционная деятельность...Англо-русский экономический словарь