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:

Revoke

To formally withdraw, cancel, or annul a right, privilege, or decision.

Offeror

The party in a contractual agreement who presents an offer to another party (the offeree) indicating readiness to enter into a contract on specified terms.

Legal Right

An entitlement or permission granted to individuals by law allowing them to act in a certain way or to be treated in a specific manner.

Unauthorized Means

Activities or methods used without proper authorization or permission, often in a context of accessing or obtaining information.