GREEN SHOE OPTION Definition

Bookmark and Share

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.

Learn new Accounting Terms

WORK SHEET is a document or schedule in which an accountant or auditor gathers information to substantiate an opinion concerning an account balance or test of transaction.

SALE AND LEASEBACK is a financial transaction, where one sells an asset and leases it back for the long-term. 

Suggest a Term

Enter Search Term

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