What is meant by Preferential Allotment of Shares?
Answers
Answered by
2
Answer:
Whereas Preferential Allotment involves bulk allotment of fresh issue of shares by a company to any person such as Individuals, Venture Capitalists and others at a pre-determined price. Usually, a company chooses to make a Preferential Allotment to people who want to acquire a strategic stake in the company.
Answered by
0
Answer:
A method commonly used by companies nowadays to expand its shares in the market is preferential allotment. When shares are made available to a certain set of people and companies (selected through proper procedure) at a pre-decided price, it is known as preferential allotment.
Similar questions