allotment

Allotment

During an IPO, this is the number of shares granted to each participating underwriting firm that they are permitted to sell. Remaining surpluses are then given to other firms which have won the bid for the right to sell the IPO.

Notes:

This is the chunk each firm gets to sell to its customers before the stock hits the exchanges.

See also: IPO, Prospectus, Syndicate, Underwriter

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Allotment

The number of securities assigned to each of the participants in an underwriting syndicate.

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allotment

Securities apportioned to members of an underwriting syndicate for resale to investors.