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English definition of “greenshoe option”

greenshoe option

noun [C]
 
 
FINANCE, STOCK MARKET
an agreement that allows someone who sells shares for a company to sell more shares than the company had originally planned to sell: Greenshoe options typically allow underwriters to sell up to 15% more shares than the original number set by the issuer. → See also over-allotment
(Definition of greenshoe option from the Cambridge Business English Dictionary © Cambridge University Press)
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