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Home > QFINANCE Dictionary > Definition of lottery

Definition of

lottery

General Management

random selection of successful applicants the random method of selecting successful applicants for something, occasionally used when a new stock issue is oversubscribed

lottery - Related Articles

  • The Cost of Going Public: Why IPOs Are Typically Underpriced

    Best Practice

    In a fixed-price offer, the issuer and the underwriter jointly determine the offer price, and investors place orders for shares at this price. If the issue is oversubscribed, shares are either allocated through lottery or on a pro rata basis.
    By Lena Booth

  • Only White Swans on the Road to Revulsion

    Viewpoints

    In addition to over-optimism, we suffer from the illusion of control. This refers to people’s belief that they have influence over the outcome of uncontrollable events. For instance, E. Langer has shown (1975, “The illusion of control,” Journal of Personality and Social Psychology, 32) that people will pay four and half times more for a lottery ticket that contains numbers they choose rather than a random draw of numbers.
    By James Montier

  • Understanding Equity Capital in Small and Medium-Sized Enterprises

    Best Practice

    pro rata or lottery basis. In book-building, the investment bankers canvas potential buyers and then set an offer price. Book-building is now the predominant mechanism by which IPO shares are sold around the world.
    By Siri Terjesen

  • The Problem with Derivatives, Quants, and Risk Management Today

    Viewpoints

    the card instead contains the winning lottery numbers for that night, which will be chosen in 15 minutes’ time. One in 52—the quant answer—doesn’t even begin to scratch at the possibilities.
    By Paul Wilmott

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Definitions of ’lottery’ and meaning of ’lottery’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’lottery’ and other financial terms with our online QFINANCE Financial Dictionary.

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