There are a number of factors that determine how IPO shares are allocated. To gain a better understanding of how many shares may be available to retail clients, review the deal's preliminary prospectus, commonly referred to as the red herring. Download infographic (PDF)
There are risks associated with investing in a public offering, including unproven management, and established companies that may have substantial debt. As such, they may not be appropriate for every investor. Customers should read the offering prospectus carefully, and make their own determination of whether an investment in the offering is consistent with their investment objectives, financial situation, and risk tolerance.
