In business, allotment is a method of distributing previously un-issued shares in a limited company in exchange for a contribution of capital. An application for such shares will often be made after the issue of a prospectus on the flotation of a public company or on the privatisation of a state- owned industry. The company accepts the application by dispatching a letter of allotment to the applicant stating how many shares he has been allotted; he then has an unconditional right to be entered in the register of members in respect of those shares. If the number of shares applied for exceeds the number available (over subscription), allotment is made by a random draw or by a proportional allocation. If an applicant has been allotted fewer shares than he has applied for, he receives a cheque for the un-allotted balance (an application must be accompanied by a cheque for the full value of the shares applied for). Research Allotment
Abbreviations
Money
Research Allotment