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Definition of 'Allocation Notice'
An official notification from an options clearing firm to the writer of an option that the current option holder has exercised and, therefore, the writer must produce the underlying security. This may require the option's writer to purchase or sell securities on the open market to fulfill the contractual obligation.
Allocation notice can also refer to how a broker or advisor would inform a client who has shown interest in an IPO whether his or her requested allocation of IPO shares is available in full, or if only a fraction of the requested total is available for purchase.
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Investopedia explains 'Allocation Notice'
Because such a high percentage of options expire worthless, investors tend to overlook the fact that every contract can be exercised by the current holder. While most options traders avoid holding their contracts at expiration, someone will always be holding the in-the-money options, and will call upon the writer of the option to deliver the goods.
For example, if an owner of a large block of stocks has been writing covered calls to generate income, and the stock has appreciated enough to make the option exercise profitable, whoever is holding the contract at expiration will call on the stockholder to deliver the shares through his or her brokerage firm.
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Search results for 'Allocation Notice'
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http://financialedge.investopedia.com/financial-edge/0310/How-Your-Credit-Card-Is-Changing.aspx
... This 45-day notice also applies to fees and "significant changes" to the ... Payment
Allocation Another change going into effect in February 2010 will impact the ...
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http://www.investopedia.com/exam-guide/series-66/regulation-of-securities/registration-of-securities.asp
... Tactical Asset Allocation; 6.3 Diversification; 6.4 Portfolio Styles: Active vs ... Notice
Filing If an issuer deals in federally exempt securities, the person/entity ...
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http://www.investopedia.com/articles/basics/05/diversification.asp
... of whether you are aggressive or conservative, the use of asset allocation to reduce ...
With this in mind, you will notice that mutual fund portfolios composed of ...
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http://www.investopedia.com/articles/mutualfund/09/analyzing-mutual-fund-risk.asp
... Notice that the fund had a 30% weight to Sector 1 while the benchmark ... Step 7: Calculate
the allocation attribution by multiplying the index return for each ...
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http://www.investopedia.com/university/financialstatements/financialstatements7.asp
... Depreciation Depreciation is tricky because it is the allocation of a prior ... Notice
the effect on depreciation expense: it drops significantly, from $2 billion ...
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http://www.investopedia.com/exam-guide/series-66/client-communication-compensation-issues/advertising.asp
... The Investment Advisers Act of 1940 defines advertising as any letter, notice, circular
or other written communication addressed to more than one person, as ...
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http://www.investopedia.com/exam-guide/series-65/communication-compensation/advertising.asp
... The Investment Advisers Act of 1940 defines advertising as any letter, notice, circular
or other written communication addressed to more than one person, as ...
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http://www.investopedia.com/exam-guide/series-66/exam-preparation/multiple-choice-exams.asp
... Notice Negatives: Negatives can be words like no, not, none and never, or they can
be prefixes like il-, as in illogical, un-, as in uninterested, im-, as in ...
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http://www.investopedia.com/exam-guide/series-65/investment-advisor-registration/federally-registered-investment-advisors.asp
... Tactical Asset Allocation; 12.4 Diversification; 12.5 Active vs. ... registration, it
must withdraw its registration by filing a Form ADV-W Notice of Withdrawal from ...
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http://www.investopedia.com/articles/retirement/11/implement-effective-retirement-income-strategy.asp
... Notice that we are specifically not investing for income; rather we are ... change the
focus from individual security selection to asset allocation and portfolio ...
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