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:

Negative Emotions

Feelings that are generally perceived as unpleasant or undesirable, such as sadness, anger, and fear, influencing both psychological and physical well-being.

Impulsivity

A tendency to act on a whim, displaying behavior characterized by little or no forethought, reflection, or consideration of the consequences.

Type A

Refers to a personality characterized by competitiveness, high ambition, impatience, and a sense of urgency, often linked to stress and cardiovascular diseases.