Part of the underwriting agreement which allows, in the event the offering is oversubscribed, the issuer to authorize additional shares(typically 15 percent ) to be distributed by the syndicate Also called the green shoe.

This is the fancy name for the green shoe, the underwriting agreement which allows the underwriters to buy up to an additional 15% of shares at the offering prices for a period of several weeks after the offering.

decimal Amount The amount (or percentage) for which an instrument can be over allotted (as in Greenshoe option).

In an offering, the sale of more securities than are available, in anticipation that some orders may not be confirmed.

Selling more securities than are available in an IPO.