Question

What does the green shoe option provide companies the

Q: Answer-What does the green shoe option provide companies the ability to do during the 30-day stabilisation...

The green shoe option, also known as an over-allotment option, allows companies to intervene in the market during the 30-day stabilisation period following their listing. This intervention involves purchasing equity shares from the market using a company-appointed agent if the share prices fall below the issue price. This mechanism is used to stabilize the share price and ensure a smoother transition for the companys shares in the market after their initial listing.

ability to do during the 30-day stabilisation period after listing?

A Sell additional shares above the issued quantity.

B Buy back shares from existing shareholders.

C Intervene to stabilize share prices through market purchases.

D Issue convertible bonds to raise capital.

E Split shares to increase market liquidity.

Practice Next

More Finance Lectures Questions

Article _______ of the Indian constitution provides for superintendence, direction and control of elections vested in an Election commission
Read the following about the Revenue expenditure.

A. Revenue Expenditure is expenditure incurred for purposes other than the creation of physic...
With which of the following sports would you associate the team ‘Kerala Blasters’?
Which of the following rivers are east flowing rivers?

A) Godavari

B) Tapi

C) Krishna

D) Narmada
Which of the following is NOT the function of a commercial bank?
Which state has the maximum percentage of Jain population as per 2011 census?
Which compound structure includes a saturated short-chain fatty acid with 4-carbon molecules, commonly found in esterified form in animal fats and plant...
When was the Registration of Births and Deaths Act passed?
Rahi Sarnobat is relatedto whichof the following sport?
What is the approx width of broad-gauge railway network in India?

What does the green shoe option provide companies the

Solution