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Season 3, Episode 5: Alibaba
Acquired
Ipo Win Ahu, What's Your Trivio for the Day?
Underwriters are allowed to support the share price after an offering without putting their own capital at risk. The reason it's called green shoe option was the first company to ever do it and have this written in as a term with their underwriters. As a public company, a year later, they're actually trading under the ipo price.
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