FT MarketWatch

Green shoe

A Provision in an Underwriting agreement which allows members of the underwriting Syndicate to Purchase additional shares at the original. This is a useful Provision for underwriters in the event of exceptional public Demand. The name comes from the fact that Green shoe Company was the first to grant such an Option to Underwriter. also called Overallotment provision.

Related Terms: 19 Allotment, Call, Demand, Green shoe, Lot, Low, Lows, Option, Overallotment, Purchase, Provision, Public, Syndicate, Share, Underwriter, Underwriting, Underwriting agreement, Write, Writer
Other Related Pages: Category: IPOs Starting With: G
Additional Related Terms: 52-week low, Allowance for depreciation, Accrual of discount, Amortization of premium, At par, ABC agreement, Allied member, All or any part, Associate member, At best