The Green Shoe Option Is Most Apt to Be Exercised

question 40

Multiple Choice

The Green Shoe option is most apt to be exercised when an IPO is ______ and _____.

• A)underpriced; oversubscribed
• B)underpriced; undersubscribed
• C)correctly priced; neither over nor undersubscribed
• D)overpriced; oversubscribed
• E)overpriced; undersubscribed

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Definitions:

Reciprocal Determinism

Bandura’s term for the way people affect their environments even while their environments affect them.

Julian Rotter

An American psychologist known for developing social learning theory and the concept of locus of control.

Positive Affect

The experience of pleasurable emotions such as happiness, joy, enthusiasm, and contentment.

Reinforcement

In operant conditioning, a reward that, when applied following a behavior, increases the frequency of that behavior. In classical conditioning, this refers to the pairing of an unconditioned stimulus (such as food) with a conditioned stimulus (such as a bell).