Wednesday, January 31, 2018
Yes, Jim mentioned the availability of shares ay $1.35 and the scarcity of available shares at $1.30
The use of greenshoe options in share offerings is now widespread, for two reasons: it is a legal mechanism for an underwriter to stabilize the price of new shares, which reduces the risk of their trading below the offer price in the immediate aftermath of an offer - an outcome damaging to the commercial reputation of both issuer and underwriter; secondly, it grants the underwriters some flexibility in setting the final size of the offer based on post-offer demand for the shares.
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