Allotment

What is an 'Allotment'

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

BREAKING DOWN 'Allotment'

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

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