When the sales team sells ipo shares to institutional investors, how is the commission charged? (How do investment banks make money on the back end)

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Commission is baked in on syndicate trades, so you can’t clearly see the mark up on the trade confirm.

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They buy the shares below the IPO price and then sell into the market at the IPO price. The underwriters make money by literally buying and selling the shares of the IPO.

You can’t charge typical commissions on syndicate. You get the the concession fees that are built into the price. Brokers typically won’t see how much they made on those trades until they settle as the fees for each offering are different.

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