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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: N2GROWTH who wrote (2447)	8/6/1999 1:28:00 AM
From: -	Read Replies (2) \| Respond to of 18137

N2Growth, that is amazing about the Green Shoe clause. I presume his is something they write into the contract for taking the company out, and the shares they cover with come from the company's outstanding/authorized shares, not from the shares offered out in the IPO. It would provide a further "kicker" reward to the I.B. for getting the shares out successfully, if it "rockets" they can sell into it while all their pals are flipping, meanwhile they can happily sell short into the strength, knowing they can safely cover using these shares via "Green shoe". How Goldman! Pretty slick and it's the advantage they have because they write the rules (that is, contract)... Can't you see them cooking this up and slipping it in... a legal freebie that makes them fortunes over time. Someday a regulator will blow the whistle... -Steve