Allotment letter (letter of allotment) confirms number of securities alloted to investor for a new issue. It is a formal document, certificate with renounce date. The owner - stockholder - may renounce it to another stockholder or sell. Allotment letter accepted by stockholder is the evidence of title to the stockholding. It can be traded on a stock exchange.
Allotment letter is used also in real estate. When individual buys property under construction he/she has to receive allotment letter from the builder. In that case, allotment letter includes details regarding the property, payment options, charges, etc. It is necessary in order to obtain loan from the bank.
- Ding, H., Guo, B., & Liu, Z. (2011). Information sharing and profit allotment based on supply chain cooperation. International Journal of Production Economics, 133(1), 70-79.
This is an article stub.