Meaning – The term green sheet, refers to the document prepared by an underwriter to summarize the main components of a new issue or initial public offering (IPO). Such documents are for internal use only, functioning as a marketing tool to help drum up interest from prospective institutional investors and brokers.
A green sheet is only an introduction to a new security issue and is not intended to be comprehensive in nature. For a complete breakdown of what an investment offering represents, it is necessary to consult the prospectus.
The term green sheet also refers to the travel Expense Allowance (TEA) multi-part form used in the United States to submit expenses for reimbursement.
Example of usage – “Generally, a green sheet will contain a brief overview of the advantages and disadvantages of the new issue, including any benefits and risks, as well as insights on initial pricing.”