OTCPK:MEAOD - Post by User
Comment by
brandy2000on Mar 20, 2017 1:44pm
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Post# 26003040
RE:RE:RE:Big Money at Play
RE:RE:RE:Big Money at PlaySo if he is an insider how can he accomplish this chore if needed. MARKET STABILISATION Underwriters may stabilize the price of a security following a public offering. In order to provide market stabilization, the underwriters must over-sell the offering at closing, which creates a short position. If the market price of the securities falls following the closing, the underwriters can fill their short position by buying in the market, which creates upward pressure on the market price. In order to avoid being exposed to the risk of an increased market price following closing, the underwriters will require your company to provide them with an option to purchase additional securities at the offering price in order fill their short position. This is referred to as an over-allotment option or a "greenshoe"