What are the types of allotment of shares?

MODE OF ALLOTMENT OF SHARES: A public company may allot shares in the following ways:

PUBLIC OFFER: An application is made to stock exchange(s) for the shares to be dealt through it/ them, before any offer of allotment to public.

PRIVATE PLACEMENT/ PREFERTIAL ALLOTMENT:

RIGHTS ISSUE:

BONUS ISSUE:

What is the difference between allotment and issue of shares?

The key difference between allotment and issue of shares is that an allotment is a method of share distribution in a company whereas share issue is the offering of the ownership of the shares to shareholders to hold, and later transfer to another investor.

What is allotment?

1 : the act of allotting something : apportionment The allotment of a full page in the newspaper to each candidate is fair. 2 : something that is allotted an allotment of time especially, chiefly British : a plot of land let to an individual for cultivation.

What is application and allotment of shares?

When the shares are offered, potential shareholders (applicants) apply to buy them on an application form with a cheque to cover the cost of the shares. When the shares are allocated to the applicants they become the allottees, i.e. the new shareholders; this is known as the process of allotment.

What are preferential allotments share?

PREFERENTIAL ALLOTMENT OF SHARES- USES AND ABUSES, INCLUDING AN EMPIRICAL STUDY OF A FEW RECENT PREFERENTIAL ALLOTMENTS INTRODUCTION:-. CONCEPT OF PREFERENTIAL ALLOTMENT OF SHARES:-. CONDITIONS FOR PREFERENTIAL ALLOTMENT OF SHARES:-. BENEFITS OF PREFERENCE SHAREHOLDERS:-. EFFECT OF IRREGULAR ALLOTMENT:-. PREFERENCE SHARE CAPITAL IN INDIA:-.

What is IPO basis of allotment?

IPO Basis of Allotment is a document published by the registrar of an IPO after finalizing the share allocation based on regulatory guidelines. This document provides information about the demand of the IPO stock. The IPO allotment information is categorized by the number of shares applied by investors.

What is bonus issue?

A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free additional shares to existing shareholders. A company may decide to distribute further shares as an alternative to increasing the dividend payout.

What is the issue of shares?

Issue of Shares is the legal transfer of ownership of the shares to the investor by the company. A company issues a share only once; after that, the investor may transfer its ownership by selling to another investor.