By Leanna Kelly If you follow a company’s financials, you might see instances of share allotment in its SEC filings. What is share allotment? In simplest terms, it’s the creation of new shares by the company, issued to new or existing shareholders. The total number of shares and their structure constitute the allotment.
The allotment of new shares comes with a wide array of implications for the company and shareholders alike. In some cases, it’s seen as a positive move; in others, it’s viewed negatively. The context of when and why the company creates new shares matters, as does the total number of …read more
