Designation of an item to a specific purpose or place.

This may be done in the event of scarcity, as in the distribution of resources over different time periods, products, operations, or investments. In terms of stocks, allocation of dividends usually means that the dividends are added to the shares of stock held as principal and therefore increase the size of the stock. Related Words

* Designated Order Turnaround
* Resource allocation
* Dividend Reinvestment Plan
* Share repurchase plan
* Principal amount