Question

What is meant by 'Pro rata Allotment of Shares'?

Answer 1

Answer:

Here's your answer .

Explanation:

• Pro-rata allotment refers to the allotment of shares in proportion of the shares applied for. When a company makes pro-rata allotment, it adjusts the excess money received at the time of application firstly, towards the allotment and then towards calls. ... It receives applications for 20000 shares.

Answer 2

Answer:

Pro rata is a Latin term used to describe a proportionate allocation. ... If something is given out to people on a pro rata basis, it means assigning an amount to one person according to their share of the whole.

Allotment generally means the distribution of equity, particularly shares granted to a participating underwriting firm during an initial public offering (IPO). There are several types of allotment that arise when new shares are issued and allocated to either new or existing shareholders.