Thursday, December 24, 2009

Guess??

X is a provision contained in an underwriting agreement that gives the underwriter the right to sell investors more shares than originally planned by the issuer. This would normally be done if the demand for a security issue proves higher than expected. Legally referred to as an over-allotment option. this helps in stabilising the post listing price of shares.. Identify X.

Answer: Greenshoe option

3 comments:

  1. greenshoe option
    quizcompany.blogspot.com

    ReplyDelete
  2. merchant banking- yes greenshoe option :)
    akshay gogia

    ReplyDelete