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Let's talk IPOs. Esoteric IPO feature called the “greenshoe." If company’s IPO is underpriced; deal automatically expands by 15% (opposite of what company would want). If deal trades below IPO price, greenshoe shares used for "stabilization" (buying shares below IPO price). Here’s the question. In that case, there is a gap between the purchase price and the IPO price. If you multiply this delta by the # of greenshoe shares - that can represent a potentially big number. Let’s call it the “greenshoe bounty.” Who gets the bounty? Academic research suggests that (1) stabilization doesn't work, and (2) greenshoe creates biased incentives in both directions. https://t.co/dETDfcMgt9