In connection with a securities offering, the lead underwriter will allocate (or apportion) to the other members of the underwriting syndicate the securities that they may offer and sell. The underwriters will then allocate securities to particular customer accounts following a book building process in which they have sought indications of interest from investors. Generally, investment banks will have policies or principles that they will apply in respect of allocating securities to client accounts that are designed to comply with applicable regulations and avoid conflicts of interest.

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