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A Reverse greenshoe is a special provision in an IPO prospectus, which allows underwriters to sell shares back to the issuer. If a 'regular' greenshoe is, in fact, a call option written by the issuer for the underwriters, a reverse greenshoe is a put option. Reverse greenshoe has exactly the same effect on the share price as a traditional option but is structured differently. It is used to support the share price in the event that the share price falls in the post-IPO aftermarket. In this case, the underwriter buys shares in the open market and then sells them back to the issuer, stabilizing the share price. In certain circumstances, a reverse greenshoe can be a more practical form of price stabilisation than the traditional method. ==How regular greenshoe option works== *Regular greenshoe option is a physically settled call option given to the underwriter by the issuer. *The underwriter has sold 115% of shares and thus is 15% short. *The IPO price is set at $10 per share. *If it falls to $8, the underwriter does not exercise the option, instead it buys the shares at $8 in the market to cover his short position at $10. Buying a large block of shares stabilizes the price. The underwriter makes $2. *If the price rises to $12, the underwriter exercises the option, buying shares from the issuer at $10 (minus the underwriting discount) and closing out his short position. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Reverse greenshoe」の詳細全文を読む スポンサード リンク
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