Edumarz

What is meant by Calls in Arrears?

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— 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.”

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