James O’Grady comments for Forbes on the initial public offering (IPO) by Medallia, which saw its stock price rise 76 percent on its first day of trading. Observing that, on the first day of an IPO, it can be difficult to assess whether the IPO pricing was appropriate, O’Grady says, “A stock trading up early on will typically trigger underwriters exercising their ‘greenshoe,’ or overallotment option, to buy up more shares–additional proceeds that do go to the issuing company, though at the lower (and more dilutive price).”