Business Studies

When shares are not payable in a lump sum, second instalment is called ____________.


ANSWER

Allotment Money


SOLUTION
 Allotment Money: The company allots the shares among different applicants after receiving their share application money. The allotment of shares implies that the company has accepted the application of the subscribers and decided to give shares to them. The company sends letters to the applicants intending to subscribe the shares which are called ‘Letter of Allotment’. The letter of allotment provides the information about the number of shares allotted to the subscribers and the amount to be paid by them as the allotment money.
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Single Correct Medium Published on 18th 08, 2020
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