The second installment collected by the company on its issued shares is called:

Allotment Money

The correct answer is option 2- Allotment Money.

The second installment collected by the company on its issued shares is called Allotment Money.

A salient characteristic of the capital of a company is that the amount on its shares can be gradually collected in easy instalments spread over a period of time depending upon its growing financial requirement. The first instalment is collected along with application and is thus, known as application money, the second on allotment (termed as allotment money), and the remaining instalments are termed as first call, second call and so on. The word final is suffixed to the last instalment. However, this in no way which prevents a company from calling the full amount on shares right at the time of application.