The Green Shoe Option Is Most Apt to Be Exercised

question 7

Multiple Choice

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

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

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Definitions:

Dissatisfaction

Dissatisfaction is the feeling of displeasure or unhappiness resulting from unmet expectations or desires.

Psychological

Relates to the mental processes and emotional state of an individual or group.

Collateral Characteristics

Attributes or features that are parallel or supplementary to the main qualities or aspects of something or someone.

Personal Qualities

The characteristics, traits, or attributes that define an individual’s personality or demeanor.