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what is the procedure of allotment of shares?

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Shaun Lehner

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What is the procedure for allotment of shares?

what is the procedure of allotment of shares?


What is the position of an applicant for shares bofore allotment and after allotment of shares?

Before allotment of shares position is Applicant. He doesnt owner of the company. He do not have any rights on company profits and he is not liable for company liabilities. After allotment of shares he become Share Holder. He has right to get company profits. He is the owner of company. He is liable of company liabilites to the extent of his shares.


What is the difference between issue of shares and allotment of shares?

An allotment of shares is the process in which a person is given the right to be included in the register of members within a specific company. An issuance of shares is when the person is actually issued the shares in which they are deemed entitled to.


What is pro rata allotment of shares?

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What is Pro-rata allotment of shares?

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Your rank in uptu is 48625 what is your seat allotment procedure?

MY RANK IN UPTU IS 27577,WHAT IS MY SEAT ALLOTMENT RESULT


What does allotment of shares mean?

Allotment of shares refers to the process by which a company distributes its shares to investors or shareholders, typically during an initial public offering (IPO) or a new issue of shares. This involves determining how many shares each investor will receive based on their application and the total number of shares available. The allotment can be done on a pro-rata basis or through other methods, depending on demand and company policy. Once shares are allotted, investors officially become shareholders of the company, entitling them to rights such as voting and dividends.


What is Share Allotment?

The process of allocating shares between shareholders usually pro rata or according to some prior agreement. The allotment may have conditions, which must be satisfied before the shares are issued, eg payment for them. This precedes the actual issue of shares.


Define and explain issue and allotment of corporate finance?

issue is the companies issuing shares to the public. An allotment process is whereby the shares which have been applied for by the public are allotted to the share applicants in the percentage holding of the company that they have applied for


What if shareholder did not take up the share allotment?

If a shareholder does not take up a share allotment, the company may either reallocate the shares to other investors or hold them as treasury shares. This can result in a dilution of ownership for existing shareholders if new shares are issued to others. Additionally, the company may not raise the expected capital, potentially impacting its financial plans. Shareholders may also miss out on potential gains if the shares increase in value after the allotment.


What is the the time period of allotment of share?

The time period of allotment of shares typically ranges from a few days to a few weeks after the closure of the initial public offering (IPO) or after the issuance of shares by a company. This period allows for the processing of applications, verification of payment, and allocation of shares to successful applicants.


Allotment of shares on pro rata basis?

Pro - rata allotment of shares is opted by the Company when there is an over-subscription. The excess application money is adjusted towards the sum due on allotment. We calculate the amount of Pro - rata in the following way: Suppose X Ltd invited applications for 1,00,000 shares and received applications for 1,50,000 shares. In this case the pro - rata is calculated as 1,50,000/1,00,000 = 3:2. Hence the Pro - rata is 3:2.