Allotment

AAA

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 EXPLAINS 'Allotment'

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

RELATED TERMS
  1. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  2. Laddering

    The promotion of inflated pre-IPO prices for the sake of obtaining ...
  3. Underwriting

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

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

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

    A professional financial services group formed temporarily for ...
Related Articles
  1. 5 Tips For Investing In IPOs
    Investing

    5 Tips For Investing In IPOs

  2. IPO Basics Tutorial
    Retirement

    IPO Basics Tutorial

  3. How Wells Fargo Became The Biggest Bank ...
    Stock Analysis

    How Wells Fargo Became The Biggest Bank ...

  4. Alibaba's Goal: Supplant eBay, Amazon ...
    Stock Analysis

    Alibaba's Goal: Supplant eBay, Amazon ...

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center