Sunday, February 14, 2010

What are greenshoe option and safety net?

What are greenshoe option and safety net?


What are greenshoe option and safety net?

Posted: 14 Feb 2010 04:20 AM PST

Greenshoe is an option that allows the underwriting syndicate of an IPO to sell additional shares to public if the demand is high. The name comes from the fact that Green Shoe Company was the first to issue this type of option. A safety net means investors who subscribe to the IPO of a company can...

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