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

To: Mark Davis who wrote (2493)	8/6/1999 11:48:00 PM
From: -	Respond to of 18137

Mark, The source of these "Green Shoe" shares would most likely be from shares the Corporation has authorized, but has not yet sold to the public through the IPO. Typically in an IPO only a fraction of shares are offered out. All it takes is the flick of an investment banker's pen to get the Company's Board to "give" him a few more shares (through these options), if he chooses to exersize his option. Relatively easy for an I.B. to negotiate when doing this kind of deal. Those authorized shares that each Corporation controls are the funny-money / "oil in the gears" that when you boil it down all the larger Corporations "run off of"...a large number of authorized shares is an amazing and incredibly valuable sort of currency to control. I've seen this up close from the inside, trust me on that one! -Steve