Greenshoe - futures io
futures io


A greenshoe option is an extra allotment option in the context of an IPO.

If the demand seems higher than expected, the underwriter has the option to sell more securities if the demand seems higher than initially expected. This offers an extra method of price stabilisation.

This condition was first introduced in 1919 when Green Shoe Manufacturing Company went for IPO.

Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada),
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.