Marked application is the term which is used in underwriting of shares and debentures. It is the topic of B.Com. Corporate accounting. Marked application means all those application which is received by company and a mark will show on each application which identify a specific underwriter's sale. Suppose, A has sell XYZ's company's 20000 share applications. Now, when company gets 20,000 share applications, it application will show A's identity. So, A underwriter's liability will deduct with 20000 shares. ( It is assumed that each shareholder send one application for buying one share).
If company has also contracted with B underwriter and he underwrote 10,000 shares and company receives the application of 5000 shares in which mark shows the identity that it was sold by B. So, B underwriter's liability will decrease with 5000 shares.
So, mark on application or marked application is very important for calculating the net liability of underwriter.
If company has also contracted with B underwriter and he underwrote 10,000 shares and company receives the application of 5000 shares in which mark shows the identity that it was sold by B. So, B underwriter's liability will decrease with 5000 shares.
So, mark on application or marked application is very important for calculating the net liability of underwriter.
