Alottment financial definition of Alottment
allotment (redirected from Alottment)
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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.