Finance Dictionary

Allotment

Allotment in finance refers to the process of distributing financial securities, such as shares, bonds, or mutual fund units, among investors. It is a crucial step in public offerings, private placements, and other financial transactions where multiple investors apply for a limited number of financial instruments. The allotment process ensures a structured and fair distribution based on predefined criteria, including investor categories, subscription levels, and regulatory guidelines. In an I...