[uh-lot-muh
nt] 
| 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. |
| al·lot·ment (ə-lŏt'mənt) n.
|
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
allotment
