Which of the Following Best Defines the Term Overallotment Option

Multiple Choice

Which of the following best defines the term overallotment option?

A) Loans, usually long term in nature, provided directly by a limited number of investors.
B) Allows shareholders to purchase unsubscribed shares in a rights offering at the subscription price.
C) An underwriting provision that permits syndicate members to purchase additional shares at the original offering price.
D) The part of the underwriting contract that specifies how long insiders must wait after an IPO before they can sell stock.
E) A company's first equity issue made available to the public. Also an unseasoned new issue.