In America, brokers acting as price stabilisers arrange what is known as a ‘ green shoe’— an agreement which allows them to go back, cap in hand, to the issuing company and simply ask for more new shares to cover their position.
In America, brokers acting as price stabilisers arrange what is known as a ‘ green shoe’— an agreement which allows them to go back, in a humble and respectful manner, to the issuing company and simply ask for more new shares to cover their position.