The distribution of shares to those who have applied for them. When shares are allotted, the holder of the shares becomes a member of the company.
When new shares are issued in a company it may be that there is excess demand for the shares. In such a case, shares are â€œallottedâ€ to new subscribers on a fair basis â€“ although almost always in lower numbers than were requested. The process of share allotment is a common feature of new share issues on the London Stock Exchange.
the process of allocating shares between shareholders usually pro rata or according to some prior agreement. The allotment may have conditions, which must be satisfied before the shares are issued eg payment for them. Precedes the actual issue of shares.