Before an IPO, if investors ask for more shares than available, who gets how many shares and on which criteria?


A broker will only get so many shares for any IPO. They will give their highest profit customers priority, but try to keep the smaller ones happy as well. So where my TWTR order today was for 1000 shares, I actually was granted 100.

In the dotcon* bubble of the late 90's, there were some stocks I saw as many as 1000 hit my account.

(*not a typo, this is the title of a book on that period, the making of a bubble and irrational doings on Wall Street.

  • - What prevents you from claiming 10 times than number of shares if you estimate they will only issue you a portion of what you demand. - How are the number of shares distributed amongst brokers? Can you use several brokers to obtain more shares?
    – Youcha
    Nov 7 '13 at 21:26
  • Regardless of my request, I'd have seen the 100. Yes, if you have money to spread around, multiple brokers might improve your odds. Nov 7 '13 at 21:58
  • Youcha if you ask for more than you want you run the risk of not getting any as happened to private investors who wanted >10k in the royal mail float recently Nov 7 '13 at 23:00

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