CRAT Definition

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CRAT is an acronym for Charitable Remainder Annuity Trust.

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SHARE APPLICATION MONEY is that money received by a company during an IPO. Payments received for a subscription of stock is normally received over the IPO life. For example: Widgets Limited has been registered with an authorized capital of $2,00,000 divided into 2,000 shares of $100 each of which, 1,000 shares were offered for public subscription at a premium of $5 per share, payable as:

  • on application $10
  • on allotment $25 (including premium)
  • on first call $40
  • on final call $30

For a total of $105/share

The amounts received would be carried as a current liability until such time as the stock is issued, then it would be considered as part of equity.

PROXIMO (usually abbreviated to PROX) means of or in the following month.

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