IPO Investing Glossary

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Friends and Family

IPO shares set aside by underwriters to be allocated, at the behest of the issuer, to individuals and entities which have a close working or familial relationship with the issuer. These shares – often up to 5% of the deal – are sold at the IPO price. Examples include: directors, officers, suppliers, top customers, consultants, employee relatives, etc. This is typically defined in the prospectus as a Directed Share Program.


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