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Greenshoe option

The organiser's right to place additional shares beyond the announced size when demand proves strong.

How to read the number

It doubles as a stabilisation tool: having sold more than the base size, the organiser holds a short position it closes by buying if the price falls.

When the metric lies

The mechanism works for a limited period and a limited size. Once exhausted, the support disappears and the price moves without it.

Also known as: greenshoe

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