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DenverMade DenverMade
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4 months ago
The overallotment or green-shoe option allows

▸ the founder of the firm to sell his or her shares at a higher issue price in the case of strong investor demand.

▸ the issuing firm to take back any unsold shares from the underwriter so that an underwriting fee need not be paid for these shares.

▸ the underwriting firm to charge a higher price for the shares in cases of very high demand.

▸ the underwriting firm to buy more shares from the issuing firm if investor demand is strong.
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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dmp7474dmp7474
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4 months ago
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DenverMade Author
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4 months ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
nadiia
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Yesterday
Thank you, thank you, thank you!
macbookpro1
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2 hours ago
Good timing, thanks!
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