When the company is first incorporated, a number of shares is usually issued. There are a number of factors affecting it. This share issue, along with any money that the company may borrow, enables the company to trade. The initial shareholders are often referred to as ‘subscribers’, because they are said to subscribe to the company’s Memorandum of Association (MOA). Allotments of shares means acceptance by the company of the offer made by the applicants to take up the shares applied for. The information of allotment is given to the shareholders by a letter known as ‘Allotment Letter’. It is on allotment that share come into existence. A company can issue shares in two ways, either on cash or for consideration other than cash.