Meaning of “greenshoe option” in the English Dictionary

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"greenshoe option" in Business English

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greenshoe optionnoun [ C ]

uk us 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.

(Definition of “greenshoe option” from the Cambridge Business English Dictionary © Cambridge University Press)