Series 10 Exam Question 32: Answer and Explanation

Question: 32

During an underwriting of a hot issue, the syndicate exercises its greenshoe provision. This will allow it to buy an additional:

• A. 20% of the offering.
• B. 25% of the offering.
• C. 15% of the offering.
• D. 10% of the offering.

Correct Answer: C

Explanation:

A greenshoe provision allows the syndicate to purchase up to an additional 15% of the offering from the issuer.