The arrangement where an underwriter has the option of selling additional shares when the issue is heavily oversubscribed is known as

Name: The arrangement where an underwriter has the option of selling additional shares when the issue is heavily oversubscribed is known as
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The "green shoe" option allows underwriters to sell additional shares, typically up to 15% more, if the initial offering is oversubscribed, providing price stability and meeting excess demand.

The Arrangement Where an Underwriter Has the Option of Selling