Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• SHARE APPLICATION MONEY
  
  money received by a company during an IPO. Payments received for a subscription of stock is normally received over the IPO life. For example: Widgets Limited has been registered with an authorized capital of $2,00,000 divided into 2,000 shares of $100 each of which, 1,000 shares were offered for public subscription at a premium of $5 per share, payable as: on application $10 on allotment $25 (including premium) on first call $40 on final call $30 For a total of $105/share The amounts received would be carried as a current liability until such time as the stock is issued, then it would be considered as part of equity.
  
  Back