Application Money
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Application Money The amount an investor is asked to pay with the application for new issues, usually less than the full value of the shares, the remainder being either fully or partly collected on actual allotment. In the latter case there will be a final call for the unpaid portion.
The following provision of the Companies Act, 1956 provide that the Members or the Directors/officer(s) of a company will be personally liable if:
The application money of those applicants to whom no shares has been allotted is not repaid within 130 days of the date of issue of the prospectus, then the Directors shall be jointly and severally liable to repay that money with the prescribed interest
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Trading Terms - A
Active Share. A-D Index or Advance-Decline Index, After-Tax , Aging Schedule, Annual General Meeting, Amortization, Annual Report , Application Money, Asset.. More
Trading Terms - B
Bad Delivery, Balance of Trade, Balance Sheet , Bear , Bear Cycle , Bear Hammering , Bear Market, BSE Sensitive Index , Bullion, Buy and Hold Strategy,.. More