Positive impact main purpose of this method is to provide underwriters with flexibility in dealing with unexpecte market fluctuations. If the share price falls below the initial offering price, the underwriter can exercise the greenshoe option to purchase additional shares and prevent greater losses. On the other hand, if the stock price rises significantly, underwriters will have to purchase additional shares at a preetermine price, which may cause them to incur losses.
Innovation research Positive impact
Using this method can provide benefits for companies offering shares, because it can help maintain stable share prices and increase investor confidence. In addition, this mechanism also gives underwriters the opportunity to rearrange share allocations USA Phone Number List and adapt to changing market nees. In the context of the Indonesian capital market, this method has been use in various stock offerings of leading companies.
Pollution that damages
Regulations and provisions regarding the use of greenshoes are regulate by the Financial Services Authority (OJK) to protect investors’ interests and USA Whatsapp Number maintain the integrity of the capital market. Also read: Understanding the Stock Exchange and its Impact on the Economy Benefits of Greenshoes accurate.id Benefits of Greenshoe The use of the greenshoe mechanism in share offerings can provide several significant benefits.
