Greenshoe defined: A greenshoe, also known as an “over-allotment option” is a provision that gives underwriters the right to sell investors additional shares in a registered securities offering than originally planned by the issuer. A greenshoe occurs when demand for a security exceeds the original issued amount.
Above is a definition for “Greenshoe” from PrivCo’s Private Company Knowledge Bank, the definitive online and e-book guide to private companies and private company deals.
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