InvestorWords.com Term of the Day The term of the day from InvestorWords.com http://www.investorwords.com Term of the Day for November 04, 2009: green shoe IW logo
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 underwriters. also called overallotment provision.

Copyright(c) 1997-2008 by WebFinance, Inc. ALL RIGHTS RESERVED. Unauthorized duplication, in whole or in part, is strictly prohibited.]]> IW logo
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 underwriters. also called overallotment provision.

Copyright(c) 1997-2008 by WebFinance, Inc. ALL RIGHTS RESERVED. Unauthorized duplication, in whole or in part, is strictly prohibited. ]]> http://www.investorwords.com/2237/green_shoe.html http://www.investorwords.com/2237/green_shoe.html November 04, 2009