The Green Shoe Option Is Used To

question 43

Multiple Choice

The green shoe option is used to:

• A)cover oversubscription.
• B)cover excess demand.
• C)provide additional reward to the investment bankers for a risky issue.
• D)provide additional reward to the issuing firm for a risky issue.
• E)Both A and B.

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Definitions:

Government Subsidies

Financial assistance provided by the government to individuals, organizations or industries to support or promote economic and social policies.

Budget Surplus

A situation where income or receipts exceed expenditures, typically within a government's budget.

U.S. Exports

The outbound shipment of goods and services from the United States to other countries.

Import Quota

A limitation set by a government on the amount or value of a particular product that can be imported into the country.