I bid on over 500 shares between two accounts on Etrade. Yet I was allocated ZERO shares??? What is the deal here?
I put in for 800 at $31, and 200 at $30.10, and some more at lower prices. I got 300. I think I am missing something here. Doesn't this system force them to give priority to the highest bidders until that price level is filled and so on? If this were the case, it would almost be impossible to get a partial fill (unless they filled all the shares at 31 or some price below that you happened to be bidding at) I suppose the flip side of this result, is that it almost guarantees a pop on the open since so many people still want more shares than they actually got. Furthermore, it has got to be alot better than the alternative!
The E trade account holders look like they will be buying the shares tomorrow on the market since no allocation was received. My buddy had an order in for 4k but got none so far.
Hi. Some other guys already posted the details, published there: http://www.interactivebrokers.com/en/general/about/mediaRelations/05-03-07.php?ib_entity=llc The following lines are the most important (especially the first and the last) * THE AUCTION CLEARING PRICE was $33.00. * The offering price was $30.01. * A total of 13,504 bids were received in the auction. * A total of 8,282 bids were successful. * A total of 145,514,807 shares, in total, were bid for at prices equal to or in excess of the offering price. * THE PRO RATA FILL RATE FOR BIDS WAS 27.5%. So 27.5% was allocated to each bid above $30.01 (rounded to 100). So there was quite a high "oversubscription" at $30.01... BUT the "real" auction clearing price (at which exactly 100% of the shares would have been allocated to the bidder) was $33.00. So IB reduced voluntarily the price by nearly 10% (for differents reasons, one of which is having a better "track record"...) The difference between the auction price and the offering price is admittedly not a low % but is not as "gigantic" as many of you said.... I do not think the price would open much above the real "fair" price (probably in the 33$ / 35$ range).
I'm glad im not in this seems like its gonna drop with everyone trying to squueze every last penny out of this