Mukmiga Sports Entertainment is offering 700 shares in a Dutch auction IPO. Where the following bids have been received how many shares will Bidder C receive?
$\begin{array}{c}
\begin{array}{c}
\underline{\text { Bidder}}\
\mathrm{A} \
\mathrm{B} \
\mathrm{C} \
\mathrm{D} \
\mathrm{E}
\end{array}
\begin{array}{c}
\underline{\text {Quantity}}\
100\
200\
200\
300\
600
\end{array}
\begin{array}{c}
\underline{\text {Price}}\
\$ 24 \
22\
22\
21\
20
\end{array}
\end{array}$

Question

Mukmiga Sports Entertainment is offering 700 shares in a Dutch auction IPO. Where the following bids have been received how many shares will Bidder C receive? 
$\begin{array}{c}
\begin{array}{c}
 \underline{\text { Bidder}}\
\mathrm{A} \
\mathrm{B} \
\mathrm{C} \
\mathrm{D} \
\mathrm{E}
\end{array}
\begin{array}{c}
 \underline{\text {Quantity}}\
100\
200\
200\
300\
600
\end{array}
\begin{array}{c}
 \underline{\text {Price}}\
 \$ 24 \
22\
22\
21\
20
\end{array}
\end{array}$

Quizplus · Accepted Answer

In a Dutch auction IPO, shares are allocated starting with the highest bidder until all of their demand is satisfied, then moving to the next highest bidder and so on until all shares are allocated. Bidder C's bid of 200 shares at $22 per share is the highest bid that has not been fully allocated yet. The next highest bid is Bidder D's bid of 300 shares at $21 per share, but Bidder D's demand has already been fully satisfied with the previous bids, so they will not receive any additional shares. Therefore, Bidder C will receive their full demand of 200 shares, plus an additional 100 shares from Bidder D, for a total of 300 shares.

Mukmiga Sports Entertainment Is Offering 700 Shares in a Dutch