IPO video quiz

If a company has not been profitable over the last three years, how does the IPO share allocation change for Institutional Buyers and Retail Investors?

• Institutional: 50%, Retail: 10%

• Institutional: 75%, Retail: 35%

• Institutional: 75%, Retail: 10%

• Institutional: 35%, Retail: 15%

What is the typical share allocation for Institutional Buyers, Retail Investors, and High Net Worth Individuals (HNIs) in an IPO?

• Institutional: 35%, Retail: 50%, HNIs: 15%

• Institutional: 50%, Retail: 35%, HNIs: 15%

• Institutional: 15%, Retail: 35%, HNIs: 50%

• Institutional: 50%, Retail: 15%, HNIs: 35%

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What happens when an IPO is oversubscribed for retail investors?

• All retail investors receive shares on a pro-rata basis.

• The allotment process moves to a lottery system, where selected investors receive at least one lot.

• Only High Net Worth Individuals (HNIs) are allocated shares.

• The IPO is cancelled due to high demand.

What is a "Lot Size" in the context of an IPO?

• The total number of shares issued by a company in an IPO.

• The maximum number of shares an individual investor can apply for.

• The smallest number of shares an investor can buy in one transaction.

• The value of shares allocated to institutional buyers.

How are shares allocated to retail investors if an IPO is undersubscribed?

• Shares are allocated based on a lottery system.

• Every retail investor will receive at least one lot.

• Only a select few retail investors will receive shares.

• Shares are reallocated to institutional buyers.