Why is it called green shoe?

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Sigrid Hansen asked a question: Why is it called green shoe?
Asked By: Sigrid Hansen
Date created: Fri, Apr 9, 2021 9:47 AM
Date updated: Wed, Aug 31, 2022 8:28 PM

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Top best answers to the question «Why is it called green shoe»

The provision allows the underwriter to purchase up to 15% in additional company shares at the offering share price. The term is derived from the name of the first company, Green Shoe Manufacturing (now called Stride Rite), to permit underwriters to use this practice in an IPO.

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