Greenshoe
A standard IPO clause (formally an "over-allotment option") that lets the underwriters sell up to 15% more shares than the original offering size. If the stock trades above the offer price after listing, the underwriters exercise the greenshoe (the extra shares are sold). If the stock trades below the offer price, the underwriters can buy shares in the open market to cover the same short position they created by overselling, which supports the price. The greenshoe is the legal mechanism that allows banks to stabilize a wobbly IPO in its first few weeks without raising market-manipulation concerns.
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