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Pro Rata Allocation

Looking into one of the Q Bank question, Wondering if the pro rata allocation is different if there is advanced indication/no advanced indication from the clients for a specific number of shares.

From my understanding, for issues that do not recieve specific interest from clients, the shares are allocation based upon order/account size.

Is the standard different if there is specific interest in a # of shares from certain clients?

Thanks in advance.

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It can be pro rata based on interest if you have that information, or pro rata based on account size if you do not have information on clients’ interest.

Simplify the complicated side; don't complify the simplicated side.

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thanks

My pleasure.

Simplify the complicated side; don't complify the simplicated side.

Financial Exam Help 123: The place to get help for the CFA® exams
http://financialexamhelp123.com/