Allotment

An allotment is a methodical distribution of a resource to multiple entities. For example, when a corporation is selling shares and there are too many orders for the shares, the shares made available for sale are distributed to investors on an allotment basis. Similarly, when there is a stock split, the additional shares are issued to existing investors under a system of allotment that is based on their existing share holdings. Another example relates to budgeted funds, where funds are allotted to capital expenditure proposals based on an analysis of the financial returns generated by each of the proposals.