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allotment

 - 4 dictionary results

al⋅lot⋅ment

[uh-lot-muhnt]
–noun
1. the act of allotting.
2. a portion or thing allotted; a share granted.
3. (in U.S. military use) the portion of pay that an officer or enlisted person authorizes to be paid directly to another person, as a dependent, or an institution, as an insurance company.
4. British. a plot of land rented to a gardener.

Origin:
1565–75; allot + -ment; cf. F allotement


2. measure, lot, ration.
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2009.
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al·lot·ment   (ə-lŏt'mənt)   
n.  
  1. The act of allotting: initiated the allotment of ration coupons.

  2. Something allotted: had already used up their weekly allotment of flour.

  3. A portion of military pay that is regularly deducted and set aside, as for the payee's dependents or for insurance.

The American Heritage® Dictionary of the English Language, Fourth Edition
Copyright © 2009 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Financial Dictionary

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 Commentary

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

Related Links

IPO Basics Tutorial
The Murky Waters Of The IPO Market

See also: IPO, Prospectus, Syndicate, Underwriter

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
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Financial Dictionary

allotment

Securities apportioned to members of an underwriting syndicate for resale to investors.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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