Mar. 2 at 7:18 PM
$BCHT From Gemini:
In short: Yes. Institutional money is the primary driver of stock offerings (IPOs and secondary offerings) for companies on the NYSE.
While retail investors can participate, they are usually fighting for a very small slice of the pie. Here is the breakdown of how these offerings typically work:
1. The "90/10" Rule of Thumb
In a typical IPO or large secondary offering, investment banks (the underwriters) allocate the vast majority of shares to institutional investors.
• Institutional Share: Usually 90% or more. This includes mutual funds, hedge funds, pension funds, and insurance companies.
• Retail Share: Usually 10% or less. This is reserved for the brokerage's individual clients, often prioritized for "high-net-worth" or "platinum" accounts.
