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corporate actions · beginner

Application money

Application money is the amount an investor commits and blocks or pays when applying for a public issue.

In ASBA and UPI flows, application money is blocked rather than immediately transferred to the issuer.

Only the amount corresponding to allotted shares is finally debited.

Oversubscription means many applicants receive less than they applied for.

Issue documents specify lot sizes that determine minimum application money.

Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.