Green Shoes and Lockups Green Shoe provision  Allows syndicate to purchase an additional 15% of the issue from the issuer  Allows the issue to be oversubscribed  Provides some protection for the lead underwriter as they perform their price stabilization function Lockup agreements  Restriction on insiders that prevents them from selling their shares of an IPO for a specified time period  The lockup period is commonly 180 days  The stock price tends to drop when the lockup period expires due to market anticipation of additional shares hitting the street
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