# 3ABCDEFGHIJKLMNOPQRSTUVWYZ

Greenshoe Option

A provision in the underwriting agreement of a share issue for the sale of additional shares to meet unexpectedly high demand. It is a colloquial term for the over-allotment option and so named after the Green Shoe Company which first used it. The greenshoe option normally amounts to an extra 15 percent of the issue.

See also: Underwriter