Exchange Currency

reverse greenshoe option

A provision often included as part of a public offering that allows the underwriter the ability to sell shares of the stock back to the issuer at a later date. This provision is meant to protect the buyer in the event that the stock price should fall. If the stock price does in fact fluctuate negatively the underwriter would buy a bulk number of shares that are on the market in hopes of stabilizing the stocks price.

Related information about reverse greenshoe option:
  1. Reverse greenshoe - Wikipedia, the free encyclopedia
    Reverse greenshoe option is a put option for a given amount of shares (15% of the issued amount, for example) held by the underwriter "against" the issuer (if a ...
     
  2. Reverse Greenshoe Option Definition | Investopedia
    ... issuer shares at a later date. The reverse greenshoe option is used to support the price of a share in the event that after the IPO the demand for the stock falls.
     
  3. Reverse Greenshoe Option Law & Legal Definition
    Reverse greenshoe option is a provision contained in a public offering underwriting agreement that gives the underwriter the right to sell the issuer shares at a ...
     
  4. What is reverse greenshoe option? definition and meaning
    Definition of reverse greenshoe option: A provision often included as part of a public offering that allows the underwriter the ability to sell shares of the stock back ...
     
  5. What is reverse hedge? definition and meaning
    reverse hedge. reverse greenshoe option · reverse leverage. Definition. A hedging strategy in which an investor sells short a convertible security on an ...
     
  6. What is reverse convertible note (RCN)? definition and meaning
    reverse convertible note (RCN). reverse convertible bond · reverse greenshoe option. Definition. A derivative financial instrument based on underlying stocks or ...
     
  7. Green Shoe Option
    A reverse Greenshoe option is the option to sell shares back to the issuer, in the ... A reverse greenshoe option is not as negative sounding as it looks like at first.
     
  8. Pko bp initial public offering
    Reverse Greenshoe option covering 6.5% of Offering (all secondary). Reverse Greenshoe. 377 million shares, all secondary. Shares Offered. 10 November ...