Recently, an underwriter completed a sale of stock in an over-subscription. The underwriter can purchase additional shares at the offering price less fees and commissions if there is

Question

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A Green Shoe provision allows an underwriter to purchase additional shares at the offering price less fees and commissions in the event of an over-subscription, providing a mechanism to stabilize the stock price after the offering.

Recently, an Underwriter Completed a Sale of Stock in an Over-Subscription