The initial public offering (IPO) market allows institutional investors to incorporate the macroeconomic
landscape with individual corporate earnings data — and future earnings forecasts — to ascertain a
share price that will hold up to analyst and media scrutiny coupled with overall market dynamics.
However, the IPO market has increasingly included allocations for a retail tranche designed to include
clients of brokerage firms that receive shares during the issuance stage of the IPO process.

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