© 2015 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Greenshoe Option


A provision in an underwriting agreement that allows underwriters to sell an additional amount of shares if demand for the issue is higher than expected. The additional amount typically is 15% above the original allotment.