DEFINITION of '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.


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

  1. Syndicate

    A professional financial services group formed temporarily for ...
  2. Laddering

    The promotion of inflated pre-IPO prices for the sake of obtaining ...
  3. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  4. Underwriting

    1. The process by which investment bankers raise investment capital ...
  5. Quid Pro Quo

    A Latin phrase meaning "something for something". This term is ...
  6. Prospectus

    A formal legal document, which is required by and filed with ...
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