Pro Rata Allocation

CFA Level II
#1

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.

#2

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.

#3

thanks

#4

My pleasure.