— Kishore V, SME and ACW at Edumarz
A corporation sells its stock on the open market, and the public buys it.
The corporation may use ‘calls‘ to call the entire amount or only a portion of it.
When money is needed within a specified time frame, the corporation solicits funds from shareholders.
If a shareholder is unable to pay the call amount due on an allotment or any calls according to the conditions before or on the due date, the sum is considered “call-in arrears.”