Allotment

Dictionary Says

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.
Investopedia Says

Investopedia explains 'Allotment'

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

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Initial Public Offering - IPO

    The first sale ...
  2. Prospectus

    A formal legal ...
  3. Syndicate

    A professional ...
  4. Underwriting

    1. The process ...
  5. Quid Pro Quo

    A Latin phrase ...
  6. Freed Up

    1. A slang ...
  7. Laddering

    The promotion of ...
  8. Sector

    1. An area of ...
  9. Cyclical Industry

    A type of an ...
  10. Boom

    A period of time ...

Articles Of Interest

  1. IPO Basics Tutorial

    What's an IPO, and how did everybody get so rich off them during the dotcom boom? We give you the scoop.
  2. 5 Tips For Investing In IPOs

    Thinking of investing in IPOs? Here are five things to remember before jumping into these murky waters.
  3. Understanding The Ticker Tape

    We explain the meaning and use of that reel of symbols whizzing across your TV or computer screen.
  4. Whisper Numbers: Should You Listen?

    These unofficial forecasts hold the potential for insider insight - and investment risk.
  5. Translating Ticker Talk

    Stock tickers can say a lot about a company in just a few letters. Find out how to read them.
  6. Should You Be Afraid Of Dark Pool Liquidity?

    Don't fear the deep end. Dark pool liquidity can help drive down stock cost for everyday investors.
  7. Turnaround Stocks: U-Turn To High Returns

    Find out which catalysts can turn struggling stocks around to create a tidy profit.
  8. The Fundamental Mechanics Of Investing

    Here's a story that demonstrates why stocks and bonds were created and how they are valued.
  9. Cashing In On The Venture Capital Cycle

    Find out how VC firms make the market go round, and round and round.
  10. Spotting Sharks Among Penny Stocks

    To protect yourself from an attack, don't swim in this ocean.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center