allotment(redirected from Allotments)
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Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
In underwriting, the portion of an IPO that each underwriting firm in a syndicate receives or buys. Each firm has the responsibility to place its allotment with investors.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Securities apportioned to members of an underwriting syndicate for resale to investors.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
allotmentthe allocation of shares by directors of a company to intending shareholders who have made applications for new shares. In the event of a new SHARE ISSUE being oversubscribed (i.e. more applications for shares than the number being issued), then the company must use some formula to allocate shares among applicants. Often this involves granting applicants for small blocks of shares the full number of shares applied for, while applicants for large blocks of shares may be granted only a proportion of the numbers they applied for, or, in the event of a ballot, receive none at all if unsuccessful.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson