When a company has agreed to a green shoe, who does the underwriter buy shares from if the share price drops? Who do they buy shares from if the share price increases?
Answer to relevant QuestionsWhat is the tradeoff for having a stabilizing green shoe option in a common equity offering?Assume an investment bank has provided a fairness opinion on a proposed M&A transaction. Does this mean the board should go ahead and approve the transaction?How do professionals in sales, trading and research work together?What drove the need to separate research and investment banking?How is derivatives settlement different from securities settlement?
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