Question

What does the greenshoe option refer to in an IPO

Q: Answer-What does the greenshoe option refer to in an IPO underwriting agreement?

The greenshoe option refers to a clause used in an underwriting agreement during an IPO wherein this provision provides a right to the underwriter to sell more shares to the investors than an issuer planned if demand is higher than expected for the security issued.

underwriting agreement?

A The right of the issuer to buy back shares from investors

B The option for investors to purchase additional shares at a discounted price

C The underwriter's right to sell more shares than initially planned in case of high demand

D The option for the underwriter to delay the IPO

E The right of existing shareholders to participate in the IPO at a premium price

Practice Next

More Beepedia Questions

Amid allegations (A) of corruption, compromises (B) on safety and other issues, some of the key officials in the team were shifted out to insufficient ...
Alter
The bus terminus project, which is a long-pending demand (A) of the people of Tiruchi, is gaining momentum (B) with the Chief Minister lying (C) the fou...
Select the most appropriate ANTONYM of the given word.

Slur
Select the most appropriate ANTONYM of the given word.

DILUTE
All the window pains (A) / panes (B) were broken when I opened the house after almost ten days.

I did not want her to feel bored (A) / boared (B)...
Select the most appropriate word to fill in the blank.

She ___on paying the bill at the restaurant.
Select the most appropriate ANTONYM of the given word.

APPLAUD
In each of the questions below, the sentences have a pair of words that are highlighted. From the highlighted words, select the most appropriate word (...
Select the most appropriate synonym of the given word.

Retaliate

What does the greenshoe option refer to in an IPO

Solution