Weighted Ballot

The financial term ‘weighted ballot’ is used to describe an average in which some values count for more than others. Weighted ballot is basically used to allocate new shares in such a way so that those who have subscribed for larger or smaller portion of the issue receive disproportionate amount after an over subscription of a new issue. In short, weighted ballot is used to allocate available shares in the new issue to small or large investors. In this system, the allocation of shares is based on the number of shares applied for and biased towards either the small or the large investor. Japan is the second largest share holder in the weighted ballot after the United States at the IMF.

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Edited and Updated 31st May 2014

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