Question
What do you mean by the term ‘green shoe option’?
Answers
The Green Shoe Option (GSO) in a public offer is used by companies to provide stability to price of the share in the secondary market immediately on listing. A company, which opts for Green Shoe option can allot additional shares not exceeding 15% of the issue size, to the general public who have subscribed in the issue. The proceeds from this additional allotment will be kept in a separate bank account and used to buy shares in the secondary markets once the shares are listed, in case the price falls below the issue price. This is expected to provide support to the price of the shares. This price stabilization activity will be done by an entity appointed for this purpose.   Your Comment




  • Contributors: *,
More Finance Questions..
Very important Financial Tips that everyone should know..
What is a blank endorsement?
What is the difference between profit and gain?
What Is Account?
what is discount cash flow management?
List out things that fall under intangible asset?
How are period costs reported in the financial statements?
Tell me is financial accounting necessary?
Explain what is “over the counter market”?
What is gaap?
What are the most important goals of accounts receivable?
What are the basic financial statements?
Inspiron 1501 has complete care warranty and got dropped by customer accidentally. What kind of DPS do we create?

(A)Depot CCC

(B)Depot SCC

(C)Onsite with all needed parts

(D)Exchange System
Define the coefficient of correlation when in a negative amount?
Explain what is inflation and how is it measured?
When should a product warranty liability be recorded?
The Western Union Company , a global leader in money-transfer services, has recently announced the launch of its Digital Vendor Program intended to extend the reach and accessibility of Western Union Money Transfer(r) services to mobile finance initiatives in?
What is fbt (fringe benefit tax)?
Which items on a bank reconciliation will require a journal entry?
What are the different fields of accounting?


Search
Can you Answer!!
  • Q What is name scope in silverlight?
  • Q Give details on gtx0-j ?
  • Q The purpose of valve lead and valve lag in the valve mechanism used on the rq-1's reciprocating engine is to ......?
  • Q How do you find inflorescence in Blandfordiaceae ?
  • Q What are WMV files? Describe about WMV? - Media
  • Q What test you perform mostly? regression or retesting in your testing process?
  • Q A certain type of mixture is prepared by mixing brand A at Rs.9 a kg. with brand B at Rs.4 a kg. If the mixture is worth Rs.7 a kg., how many kgs. brand A are needed to make 40kgs. of the mixture?
  • Q What was built by the inmates of Changi Prison Camp
  • Q what is the scientific name of Purple Emperor ?
  • Q What is one-way operation?
  • Q Can i work with several databases simultaneously?