Comment on Commonly Used Jargons

Sankari Ramana commented on 03 Sep 2018, 06:30 PM

Mainly during IPOs, the company chooses to receive money on shares in different portions at different times. For example- X Ltd. issued 10000 shares of INR 10/- each at a premium of INR 20 /- , and they call only for INR 15/- first then INR 150000/- is called as Share Application Money. Then the company can choose to call for the rest of the unpaid money at once or in sections. That call made after the application money is called “First Call Money”. If the above co. makes a call of INR 10/- then INR 100000/- will be recorded in their books as First Call Money. So on and so forth till all the unpaid money is received by the money.
Hope this helps

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