Essays about: "Overallotment option"

Found 2 essays containing the words Overallotment option.

  1. 1. The Influence of Overallotment Options and Price Stabilisation in the IPO Aftermarket

    University essay from Handelshögskolan i Stockholm/Institutionen för finansiell ekonomi

    Author : Björn Nilsen; Oskar Wilhelmsson; [2019]
    Keywords : Overallotment Option; Price Stabilisation; Initial Public Offerings; Aftermarket Trading; Bid-Ask Spreads;

    Abstract : Underwriters are normally granted an overallotment option by issuers in conjunction with initial public offerings (IPOs). Prior research has established that its main purpose is to enable underwriters to engage in price stabilisation activities in the aftermarket of an IPO. READ MORE

  3. 2. The usage and effects of overallotment arrangements in Swedish IPOs: An empirical study of IPOs on the Stockholm Stock Exchange 1999-2008

    University essay from Handelshögskolan i Stockholm/Institutionen för finansiell ekonomi

    Author : David Strömberg; Marcus Oskarsson; [2009]
    Keywords : Overallotment arrangement; Overallotment option; Green Shoe-option; aftermarket short covering; price stabilization;

    Abstract : The majority of Swedish IPOs nowadays include an overallotment arrangement which enables the underwriter to stabilize the share price of the IPO if it is needed. This thesis examines how the underwriter uses the overallotment arrangement, and what beneficial effects the arrangement has for investors and the seller of the IPO. READ MORE