What Is Allocational Efficiency? Allocational efficiency, also known as allocative efficiency, is a characteristic of an efficient market where capital is assigned in a way that is most beneficial to the parties involved. Allocational efficiency represents an optimal distribution of goods and services to consumers in an economy and an optimal distribution of financial capital
What Is an Allocation Rate? An allocation rate is a percentage of an investor’s cash or capital outlay that goes toward a final investment. The allocation rate most often refers to the amount of capital invested in a product net of any fees that may be incurred through the investment transaction. An allocation rate may
What Is an Allonge? An allonge is a sheet of paper that is attached to a negotiable instrument, such as a bill of exchange. Its purpose is to provide space for additional endorsements when there is no longer sufficient space on the original instrument. The word “allonge” derives from the French word allonger, which means
What Is the All-Ordinaries Stock Index? The All-Ordinaries ( or “Kangaroos” for slang) is a stock index comprised of common shares from the Australian Stock Exchange (ASX). The All-Ordinaries Index is the most quoted benchmark for Australian equities. The ASX is responsible for calculating and distributing the index and its returns. Key Takeaways The All-Ordinaries
What Is an Allotment? The term allotment refers to the systematic distribution or assignment of resources in a business to various entities over time. Allotment generally means the distribution of equity, particularly shares granted to a participating underwriting firm during an initial public offering (IPO). There are several types of allotment that arise when new
What Is an Allowance for Bad Debt? An allowance for bad debt is a valuation account used to estimate the amount of a firm’s receivables that may ultimately be uncollectible. It is also known as an allowance for doubtful accounts. When a borrower defaults on a loan, the allowance for bad debt account and the
What Is an Allowance for Doubtful Accounts? An allowance for doubtful accounts is a contra account that nets against the total receivables presented on the balance sheet to reflect only the amounts expected to be paid. The allowance for doubtful accounts estimates the percentage of accounts receivable that are expected to be uncollectible. However, the
What Are Allowances? Allowances are a deviation from the basis grade or location allowable when delivering commodities under the terms of a futures contract. They are the permissible deviations in product quality and delivery location to the contract stipulations that are permitted before violating the terms of the futures contract. Key Takeaways Allowances are the
What is an All-Pay Auction An all-pay auction is an auction that requires all bidding participants pay their bid amount, regardless of whether they have placed the highest bid. BREAKING DOWN All-Pay Auction An all-pay auction game theory revolves around the idea of an auction where all participants are placing silent bids with the knowledge
What Is All Risks? “All risks” refers to a type of insurance coverage that automatically covers any risk that the contract does not explicitly omit. For example, if an “all risk” homeowner’s policy does not expressly exclude flood coverage, then the house will be covered in the event of flood damage. This type of policy
