For many IPOs, the lead underwriter has a(an)_______ option, which allows it to allocate an additional 15 percent of the firm's shares for a period of up to 30 days after the IPO.

Question

Quizplus · Accepted Answer

The correct term is "overallotment option," which allows the lead underwriter to sell more shares than initially planned, up to an additional 15%, to manage demand and stabilize the stock price after the IPO.

For Many IPOs, the Lead Underwriter Has A(an)_______ Option, Which