Allotment Letter

Business, Legal & Accounting Glossary

Definition: Allotment Letter

Allotment Letter

Full Definition of Allotment Letter

If you make a successful application for a new share issue, you’ll receive an allotment letter telling you how many shares you’ve actually received (which may well be different from the number you applied for if the issue is oversubscribed).

The allotment letter – also known as a share allotment form – will be exchanged later on for a share certificate or contract note.

Before this exchange, the allotment letter itself is a bearer document, conferring ownership of the shares and, therefore, is a tradeable instrument. After a specified period of time, all shareholdings on a given date are established in a share register and the allotment letter ceases to have value.

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Modern Language Association (MLA):
Allotment Letter. Payroll & Accounting Heaven Ltd.
October 04, 2022
Chicago Manual of Style (CMS):
Allotment Letter. Payroll & Accounting Heaven Ltd. (accessed: October 04, 2022).
American Psychological Association (APA):
Allotment Letter. Retrieved October 04, 2022
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Definition Sources

Definitions for Allotment Letter are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 15th February, 2020 | 0 Views.