Homework answers / question archive / Explain the working of green shoe options in the US capital market

Explain the working of green shoe options in the US capital market

Accounting

Share With

Explain the working of green shoe options in the US capital market. 1. If a number of offshore GDR investors collectively wish to sell their holdings as shares in the domestic market, the option is:

(a) To seek the company making a reverse sponsored GDR issue

(b) To sell their GDRs to a FII which can exchange them for shares and sell in the domestic market

(c) Sell their GDRs to a resident domestic investor who can seek conversion into shares

(d) Seek the company to buyback the GDRs and pay for in shares

(e) Become portfolio investors on the domestic market.