Over-allotment option and Remote participant: Difference between pages

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imported>Doug Williamson
(Create page. Source: Greenshoe option page.)
 
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''Securities issuance - price stabilisation.''
''Funds transfer''.
An institution established in one country (home country) which participates in a transfer system of another country (host country) without necessarily having established a branch in the host country.


An over-allotment 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.
In the event that the remote participant has established a branch in the host country, it does not participate in the transfer system of the host country via this branch.
 
 
Also known as a Greenshoe option, after the Green Shoe company which first used this type of option in 1917-18.




== See also ==
== See also ==
* [[Allotment]]
* [[Branch]
* [[Evergreen facility]]
* [[Institution]]
* [[Issue]]
* [[Transfer]]
* [[Offeror]]
* [[Transfer system]]
* [[Option]]
* [[Security]]
* [[Underwriter]]


[[Category:The_business_context]]
[[Category:Cash_management]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Financial_products_and_markets]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 18:17, 13 March 2023

Funds transfer.

An institution established in one country (home country) which participates in a transfer system of another country (host country) without necessarily having established a branch in the host country.


In the event that the remote participant has established a branch in the host country, it does not participate in the transfer system of the host country via this branch.


See also