allotment

(redirected from Alottment)
Also found in: Dictionary, Thesaurus, Legal, Wikipedia.
Related to Alottment: allotment of shares

Allotment

The number of securities assigned to each of the participants in an underwriting syndicate.

Allotment

In underwriting, the portion of an IPO that each underwriting firm in a syndicate receives or buys. Each firm has the responsibility to place its allotment with investors.

allotment

Securities apportioned to members of an underwriting syndicate for resale to investors.

allotment

the allocation of shares by directors of a company to intending shareholders who have made applications for new shares. In the event of a new SHARE ISSUE being oversubscribed (i.e. more applications for shares than the number being issued), then the company must use some formula to allocate shares among applicants. Often this involves granting applicants for small blocks of shares the full number of shares applied for, while applicants for large blocks of shares may be granted only a proportion of the numbers they applied for, or, in the event of a ballot, receive none at all if unsuccessful.