Allotment

What Does Allotment Mean?
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.

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

Related Terms

Freed Up
Initial Public Offering - IPO
Prospectus
Quid Pro Quo
Syndicate
Underwriter
More Related Terms

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