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Allocation is the percentage of the executed IPO application. That is, you are likely to receive fewer shares than you indicated in the application. This happens because due to a large number of interested investors, the underwriters can only satisfy a portion of the brokerage application. It happens that from just one broker, the amount of the collective application exceeds the entire offering. Therefore, if you submitted an application for $2,000, you may be credited with $500 worth of stock and the rest will just go back into the brokerage account.