Greenshoe option: Difference between revisions
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imported>Doug Williamson (Create page. Source: FCA webpage https://www.handbook.fca.org.uk/handbook/glossary/G1675.html?date=2016-07-02) |
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Revision as of 11:41, 6 August 2019
Securities issuance - price stabilisation.
A greenshoe option is an option granted by an offeror of securities in favour of the underwriters, investment firms or credit institutions involved in the offer for the purpose of covering overallotments.
Under the terms of the option, the underwriters - and sometimes others - may purchase up to a certain amount of relevant securities at the original offer price for a certain period of time after the offer of the relevant securities.
