CAPITALIZATION FACTOR Definition

Bookmark and Share

CAPITALIZATION FACTOR is any multiple or divisor used to convert anticipated benefits into value.

Learn new Accounting Terms

LIABILITY RESERVE see RESERVE.

GREEN SHOE OPTION is a clause contained in the underwriting agreement of an initial public offering (IPO). The green shoe option, which is also often referred to as an over-allotment provision, allows the underwriting syndicate to buy up to an additional 15% of the shares at the offering price if public demand for the shares exceeds expectations and the stock trades above its offering price.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.