Series 79 practice questioneasyIPO Process
Who is primarily responsible for the allocation of shares in an IPO?
- AThe SEC
- BThe issuer’s board of directors
- CThe company’s CFO
- DThe managing underwriter (lead bookrunner)✓ Correct answer
Explanation
Why D — The managing underwriter (lead bookrunner)
The lead bookrunner manages allocation decisions. Confusing the role of the underwriter with that of the SEC or company officers is a common pitfall.
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